Daily Liberal

Need for speed: The service helping instant delivery startup Milkrun continue fast-paced growth

Need for speed: The service helping instant delivery startup Milkrun continue fast-paced growth

This article in partnership with Beevo.

When new quick grocery delivery startup Milkrun launched last September it had an ambitious growth target.

With a hyperlocal strategy revolving around multiple "dark grocery" warehouse hubs that allow the business's electric-bike riders to deliver orders to customers' doorsteps within minutes, the plan was to set a cracking roll out pace as well.

Within six months of its launch, Milkrun had more than 500 staff, seven operating hubs in Sydney and was delivering to more than 35 suburbs and rising fast. In late February, it launched its first step into Melbourne and now has three hubs operating there.

"We're looking to continue that growth trajectory going forward," said Milkrun's Kate Pullinger, who, amongst her many roles within the company, manages the expansion team responsible for getting the hub sites identified and operational.

"We are the largest in this quick commerce sector in New South Wales and we would love to also be the largest in Victoria, and then pushing into other states over the course of the next 12 to 18 months."

Milkrun's founder and CEO Dany Milham is no stranger to startup success - he co-founded Australian direct-to-consumer mattress company Koala.

While online grocery delivery has existed in Australia for many years, Mr Milham's vision was to "supercharge" the experience for customers, with the opportunity to have groceries - including traditional supermarket items as well as those of smaller producers like local butchers and bakeries - delivered faster and with more personalised service.

Milkrun founder and CEO Dany Milham.

"What Dany wanted to do is give people back time and say let us manage this for you - you can place an order and one of our riders will deliver it in ten minutes," said Ms Pullinger.

"And the way that we can do that is because we deliver the groceries within a radius of those hubs."

Being able to get more and more hubs powered up and operating as fast as possible has been central in achieving the expansion trajectory Milkrun has set, and a huge challenge for the team, said Ms Pullinger.

"One of our key pillars is a growth mindset, making sure we are continuing to grow, and that means opening new hubs, continually upskilling our staff and servicing our customers in the way we've promised," she said.

"Growth is critical, especially in this phase so early on in the business. At the same time you have to also be making sure you're staying very conscious of costs. And that's especially exacerbated when you have multiple sites.

"We'll be at 20 hubs very soon and we'll be in the hundreds thereafter, but growth can only get you so far if you're not watching costs as well."

To help meet the challenges of rapid growth while also controlling costs one of the steps Milkrun took was to team up with Beevo - a specialist service that hunts down competitive rates on essential services like electricity and gas for businesses.

Beevo account manager Josh McFarlane has worked alongside Milkrun, managing the connections of utilities including electricity and internet for the Sydney and Melbourne hubs, and is on hand to troubleshoot any problems.

Need for speed: The service helping instant delivery startup Milkrun continue fast-paced growth

Ms Pullinger said Beevo's help was essential in Milkrun's ability to launch the hubs in the timeframe that had been set.

"We only launched in September so we're still growing our internal teams, we don't have the luxury of having a full facilities team so we're very reliant on specialists in this area," she said. "We just don't have the bandwidth internally to be able to manage this stuff.

"All the gas, electricity set ups have been absolutely critical in making sure we meet our launch dates. Beevo has helped us keep the pace and speed needed to be competitive in this market.

"Not only are they executing on setting things up but I know they are very price conscious when they're doing it - they are really digging down to make sure we're getting a really good deal."

Beevo currently has more than 50,000 customers across Australia and collectively finds them the most competitive rates on a range of services that as well as electricity, gas and telcos include waste management, cleaning and insurance.

Along with locating good deals and organising connections, Beevo steps in to resolve any issues with a service. Plus, it regularly reviews its customers' bills to ensure they continue to receive great rates.

It's a service proving invaluable to many businesses, said Sydney-based commercial property specialist Marcus Schraag from X Commercial who has worked with Milkrun to locate sites since its launch. He recommended Beevo to the management team.

"It's such a streamlined service Beevo offers and an incredible benefit to businesses," said Mr Schraag, "We recommend it to all of our leasing customers. Just in the last 12 months we've had about 40 customers use Beevo very successfully.

"They all tell us how easy it was. Beevo just ask a few questions and then they take care of everything."

For Ms Pullinger, Beevo's expertise means she can use her time to focus on the many other priorities that are key to Milkrun's future success.

"Growth is key pillar but the other very important priority at the moment is continuing to surprise and delight customers, to make sure that the Milkrun magic exists," she said.

"So there is real comfort for me in knowing that Beevo is there helping us to navigate those areas that they are so skilled in and find the right person for us to work with."

For more information visit www.beevo.com.au or call them on 1300 763 764.

Story in partnership with Beevo.