Asda partners with Ocado to revamp UK online grocery operations
UK supermarket Asda has partnered with technology firm Ocado to overhaul its e-commerce infrastructure, aiming to reverse market share losses to rivals Tesco, Sainsbury’s, and discounters Aldi and Lidl. Ocado will replace Asda’s online platform, handling home deliveries, click-and-collect, and third-party app orders from 2027. Ocado shares surged over 13% on the news, marking a turnaround after setbacks with North American partners Kroger and Sobeys. Asda, majority-owned by TDR Capital, generated over £21bn in sales in 2025.
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Asda outsources online shopping to Ocado
Asda has partnered with Ocado to outsource its online shopping operations, giving Ocado a significant boost after a turbulent year. The deal will provide Asda with Ocado's software to upgrade e-commerce systems across hundreds of supermarkets and dark stores, rolling out next year. Ocado's technology will handle all of Asda's home deliveries and in-store order processing via handheld devices, though Asda will continue using its own delivery vans and drivers. The partnership does not include Ocado's robot technology. Ocado's shares rose over 13% following the announcement, marking a recovery after losing crucial warehouse contracts in North America with Kroger and Sobeys. Asda executive chairman Allan Leighton hopes the deal will help reverse Asda's sales slump, while Ocado CEO Tim Steiner highlighted the importance of technology in the competitive UK online grocery market.
Yahoo FinanceOcado Shares Surge After Securing Asda Home Delivery Deal
Ocado's shares jumped 13.3% in early trading after announcing a deal with supermarket giant Asda to take over all of its home delivery operations from early 2027. The agreement will see Ocado replace and upgrade Asda's existing e-commerce infrastructure, handling deliveries from stores and warehouses. Asda will also use the platform for click-and-collect orders and deliveries through third-party apps like Deliveroo, Just Eat, and Uber Eats. The deal marks a turnaround for Ocado, which has faced challenges including problematic partnerships with US chain Kroger and Canadian chain Sobeys, both of which closed facilities using Ocado's technology. Ocado now expects to become cash flow positive in the second half of 2026. Asda, which generated over £21bn in sales in 2025 and operates 1,100 stores, aims to revitalize its online offering and better compete with German discounters Aldi and Lidl. Ocado CEO Tim Steiner expressed delight at the partnership, highlighting the importance of technology and innovation in the competitive UK online grocery market.
City AMOcado Shares Surge After Securing Asda Home Delivery Deal
Ocado's shares jumped 13.3% in early trading after striking a deal with supermarket giant Asda to take over all home deliveries from early 2027. The agreement will see Ocado replace and upgrade Asda's existing e-commerce infrastructure, including delivery operations from stores and warehouses. Asda will also use the platform for click-and-collect orders and deliveries through apps like Deliveroo, Just Eat, and Uber Eats. The deal marks a potential turnaround for Ocado, which has faced challenges including problematic partnerships with US chain Kroger and Canadian chain Sobeys, both of which closed facilities using Ocado's equipment. Ocado anticipates turning cash flow positive in the second half of 2026. Asda, under private equity owner TDR Capital and Moshin Issa, aims to revitalize sales and compete with discounters Aldi and Lidl. Ocado CEO Tim Steiner expressed delight, noting the UK's competitive online grocery market.
City AMOcado shares rocket after striking Asda home deliveries deal
Ocado shares surged 13.3% after Asda announced a deal for Ocado to take over all of its home delivery operations from early 2027. The partnership will allow Ocado to replace and upgrade Asda's existing e-commerce infrastructure, including deliveries from stores and warehouses. Shoppers will be able to buy Asda products via Ocado's web shop and use click-and-collect, while Asda can also fulfill orders from apps like Deliveroo, Just Eat, and Uber Eats. The deal marks a turnaround for Ocado, which has faced setbacks including warehouse closures with US partner Kroger and Canadian chain Sobeys. Asda, under private equity ownership, aims to revitalize sales and compete with discounters Aldi and Lidl. Ocado CEO Tim Steiner expressed delight, noting the UK's competitive online grocery market. Asda generated over £21bn in sales in 2025 with 1,100 stores.
City AMUK grocer Asda taps Ocado to revamp online business
British supermarket group Asda has partnered with technology firm Ocado to overhaul its online grocery business across the UK, aiming to stem market share losses. Asda, the third-largest UK grocer majority-owned by private equity firm TDR Capital, has been losing ground to rivals Tesco, Sainsbury's, and discounters Lidl and Aldi, with core profit falling 33% in 2025. Under the deal, Asda will replace and upgrade its e-commerce infrastructure using Ocado's technology, including front-end webshop, in-store fulfilment, and last-mile planning software. The solutions will be rolled out across stores and dark stores from 2027. The partnership will enable Asda to offer scheduled and short lead-time orders, click and collect, and delivery via aggregators like Uber Eats. Ocado shares rose 12.3% on the news. The deal is a boost for Ocado after setbacks with North American partners Kroger and Sobeys. JPMorgan estimates the deal could add £20 million in annual core earnings for Ocado from 2027.
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