carbon credits

The shift from endurance racing to ethical logistics Simon%20Mellin, the visionary behind The%20Modern%20Milkman, didn't follow the traditional Silicon Valley path. He grew up on a farm in Burnley, a town not typically associated with high-growth technology startups. After a stint building racing cars for Porsche and Ferrari, Mellin realized that the grit and pragmatic problem-solving inherent in farming and engineering provided a superior foundation for business than any textbook. He saw an opportunity to disrupt the grocery industry not by reinventing the wheel, but by modernizing a forgotten distribution model: the milk round. The inspiration was born from a collision of three pillars: environmental urgency triggered by David%20Attenborough's Blue%20Planet, the rapid digitization of food delivery through platforms like HelloFresh and Ocado, and a belief that vertically integrated logistics is the engine of the future. Mellin's approach was aggressively hands-on. He didn't start with a pitch deck; he bought a local milk round for a few thousand pounds, inherited 100 customers, and spent three weeks in a truck with a window wedged shut by cardboard to understand the friction points of the industry. Solving the unscalable through technical integration During those early morning shifts, Mellin identified why the traditional milk round was dying. It wasn't a lack of demand; it was an inability to scale payment and order management. The industry was stuck in a world of cash payments and handwritten notes on bottles. By launching a beta platform in 2019 that featured a two-sided marketplace for both drivers and customers, Mellin transformed a quaint relic into a scalable tech operation. The mission was clear: build a dense user network that leverages the high frequency of milk consumption to drive down delivery costs. This density is the secret sauce. Unlike traditional e-commerce that struggles with the "last mile," The%20Modern%20Milkman focuses on building planned habits. By delivering staples like bread, eggs, and butter three times a week, the company creates a logistics network so efficient it can deliver low-value orders profitably. This isn't just about milk; it's about owning the doorstep and solving the household's sustainability pain points through a reverse logistics model where returnable packaging is just as important as the delivery itself. Scaling through the pandemic and identifying market density When COVID-19 hit in March 2020, the business was already positioned for growth. The sudden surge in demand for home delivery saw the company grow 4x to 5x in just two weeks. While other founders might have panicked at the operational strain, Mellin kept the funnel open, acquiring customers for as little as 75p each. The pandemic served as a massive enabler, fast-forwarding the business by roughly two years and attracting high-caliber talent who wanted to support their communities during the lockdown. To identify where to expand next, Mellin moved away from hunches and toward data science. The company now overlays Experian data with population density maps to target high-value areas. However, expansion isn't just about finding the right zip codes; it's about operational resilience. Mellin advocates for a "mushroom" growth strategy—spreading out slowly from established hubs to ensure that team members can backfill roles during the high-pressure 10 p.m. to 6 a.m. delivery windows. This focus on service quality prevents the churn that often plagues rapid-scale delivery startups. The strategic acquisition of ModernMilkman.com in the US Expanding into the United States was a move driven by a mix of IP strategy and opportunistic acquisition. After realizing ModernMilkman.com was owned by Seth%20Baylor, a fifth-generation dairy farmer in Connecticut, Mellin flew out to meet him. This relationship culminated in the acquisition of the US business in January 2024. The move was informed by a failed expansion into France, where Mellin learned that building a supply chain from scratch in a foreign market with different consumption habits (the French drink significantly less milk) was a moonshot best avoided. The US market presents different unit economics. While population density is only 20% of the UK's, the average order value is significantly higher. By acquiring an established player with a ready-built supply chain and a local "face" like Baylor, Mellin mitigated the risks of entering a new geography. The company now uses a unique "Commercial Services Agreement" as a precursor to acquisition, allowing them to test technology and cultural fit before exercising a call option to buy. This capital-efficient model is now being used to scout further acquisitions across the American landscape. Disciplined hiring and the power of the un-sell Reflecting on the journey, Mellin is candid about his mistakes, particularly in hiring. He warns against "anticipatory hiring"—bringing in people to fill gaps you think might emerge in the future. Instead, he argues that founders should wait until a role is "bursting at the seams" with a real, learning problem before making a hire. This ensures the company has the necessary infrastructure to let the new hire succeed, rather than setting them up to fail in an ill-defined role. To protect the company's culture, Mellin and his co-founders conduct final-step interviews where they intentionally try to "un-sell" the candidate. They highlight the difficulties and the specific demands of the operation to see if the applicant is truly a self-starter. This transparency reduces the likelihood of a cultural mismatch three months down the line. In a business where you have three opportunities a week to either delight or upset a customer, having a team that is obsessed with operational excellence and customer happiness is non-negotiable. Future outlook on agricultural carbon credits Looking beyond the doorstep, Mellin sees a massive opportunity in the intersection of agriculture and climate tech. He predicts that the next generation of unicorns will emerge from the carbon%20credits space, specifically those enabling farmers to monetize soil health. Companies like Regen%20Network and Silvera are already leading this charge. For Mellin, this aligns with his long-term vision of incentivizing the agricultural industry to do the right thing while creating new income streams for farmers. As The%20Modern%20Milkman continues to scale internationally, it remains rooted in that original humble mission: resetting poor consumption habits through smart technology and old-fashioned resilience.