Ocado Group Plc agreed to replace and upgrade Asda’s existing e-commerce infrastructure with its own online sales platform, starting in 2027 [1, 2]. The deal covers supporting Asda’s grocery website and managing deliveries from stores and dark stores.
Asda processes more than 700,000 online grocery orders weekly across the UK [1]. Ocado’s technology will also handle deliveries from orders placed on third-party apps such as Uber Eats, Deliveroo, and Just Eat. Additionally, Asda will use Ocado’s platform for click-and-collect services accessed through its website and mobile apps [2].
However, Asda will not adopt Ocado’s robotic warehouse system in the UK, nor will it sell products via the Ocado.com website [2]. Ocado currently supports online grocery sales and home deliveries for Ocado.com (its joint venture with Marks & Spencer) and Morrisons, and previously served Waitrose [2].
Since its founding 26 years ago, Ocado has rarely turned a profit [2]. After the announcement, Ocado’s shares jumped nearly 14%, making it the biggest riser on the FTSE 250 index that day [2].
Asda’s share of the UK grocery market has fallen from 14.3% before its 2021 takeover to 11.5%, now just ahead of Aldi’s 10.8% [2]. The upgrade aims to boost Asda’s online capabilities amid this competitive landscape.
The rollout of Ocado’s platform and delivery technology across Asda’s online operations is scheduled to begin early next year [1, 2].
