Asda strikes deal to use Ocado software for home deliveries from next year
Summary
Asda has agreed to use Ocado’s technology for its online grocery shopping and home delivery services starting in early 2027. This deal will help Asda improve its website and delivery options, while Ocado will manage Asda’s online orders, including those from delivery apps like Uber Eats and Just Eat.Key Facts
- Asda will use Ocado software to run its online grocery orders and home deliveries from stores and special warehouses called dark stores.
- The partnership starts in early 2027 and includes managing click-and-collect services.
- Ocado already supports online deliveries for Morrisons and sells groceries with Marks & Spencer on its Ocado.com site.
- Asda will not use Ocado’s robot warehouses nor sell directly on Ocado.com.
- Ocado’s shares rose nearly 14% after the deal was announced, showing investor confidence.
- Asda’s market share fell from 14.3% in 2021 to 11.5% recently, and it faces strong competition from Aldi and Lidl.
- Ocado has faced challenges, including closing warehouses in the US and Canada, and has rarely made a profit in its 26 years.
- Leaders from both companies expressed optimism that the partnership will help Asda improve customer experience and keep pace in a competitive market.
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