The Modern Milkman is using ARI’s FlexLease product to provide a flexible way of sourcing and funding its fast-growing fleet.
The app-based milk and produce delivery service reinvents the traditional milk round and continues to see new customers sign up in large numbers. Its rapid growth allowed the company to achieve a 1,400% increase in revenue in 2020 alone as its delivery service spread across the North and Midlands, and by the end of 2022, the company is aiming to cover the whole of the UK.
Unlike traditional milk rounds, The Modern Milkman doesn’t have set delivery routes as its users can order locally sourced milk and produce on the app as late as 8pm the night before for delivery first thing the next day. This, along with its ever-increasing number of customers, means the usage and mileage profile of its fleet is both unpredictable and constantly evolving.
To help the business adapt quickly, The Modern Milkman has opted for ARI’s FlexLease product to fund its vehicles. ARI has already sourced and funded 55 vans, manages the conversion process and looks after all in-life services too.
Simon Mellin, CEO and one of the founders of The Modern Milkman, said: “Our business is very agile, so we needed a funding and fleet management partner who was able to work in the same way. ARI fits the bill perfectly. Because we are growing so quickly, we are always learning, and ARI’s FlexLease product helps us in this way because it is entirely transparent: we can see all costs and work which means we have a clear understanding of what is going on with our vehicles at all times.”
ARI will also help with future plans for The Modern Milkman to move to electric vehicles.
Mellin continued: “Then, when we want move to electric, the flexibility of ARIs proposition means we can transition when it suits us, rather than having to wait for leasing contracts to end. Our business is predicated on sustainability, and ARI’s FlexLease will help us to deliver this.”