Asda has struck a deal to outsource its online shopping operations to Ocado, a move that will give the grocery technology business a much-needed boost after a turbulent year.
The partnership will grant Asda access to Ocado’s software to upgrade its e-commerce systems across hundreds of supermarkets, while also being applied to its “dark stores” – warehouses used exclusively for online orders.
The deal, which will roll out next year, will see Ocado’s technology used for all Asda’s home deliveries and applied to handheld devices used by staff to process in-store orders.
The deal does not include Ocado’s robot technology, while Asda will continue to make deliveries using its own vans and drivers.
Ocado’s shares rose by more than 13pc in the wake of the announcement, highlighting the deal’s significance after a string of setbacks for the London-listed business.
The company’s shares were rocked last year by the loss of crucial warehouse contracts in North America, as US retailer Kroger confirmed plans to close three automated warehouses that used the company’s technology.
This was followed by Sobeys, a Canadian supermarket, confirming that it would close another site using the company’s kit.
Ocado Group is the business responsible for building robot warehouses, although it also owns 50pc of online grocer Ocado Retail. It announced plans to cut 1,000 jobs earlier this year.
Tim Steiner, the chief executive of Ocado Group, said: “We’re delighted that Asda has chosen Ocado to support the next phase of their online growth.
“The UK remains one of the world’s most competitive and fast-evolving online grocery markets, where technology, scale and continuous innovation are increasingly important for retailers looking to maintain leadership positions.”
Asda said the tie-up will allow it to offer a full range of online <a href="https://bitcomme.com/connectsecure-expands-microsoft-365-managed-services-platform/” title=”ConnectSecure expands Microsoft 365 managed services platform”>services, including scheduled and more immediate orders. The company currently receives more than 700,000 e-commerce orders each week.
It will also be able to process orders placed through third-party platforms such as Deliveroo, Uber Eats and Just Eat.
Allan Leighton, Asda’s executive chairman, said: “We know that continued success in this highly competitive market is dependent on providing a positive experience for customers every time they shop.
“Partnering with Ocado will strengthen our online offer and provide a consistent and high-quality experience for millions of shoppers, from order through to delivery, while supporting our formula for growth.”
