Ocado is set to enhance its same-day delivery service as it navigates pressure to demonstrate a positive turnaround.
- Currently, same-day delivery slots are limited, with availability across most UK locations but only a few thousand each week.
- The focus will shift towards encouraging larger orders for same-day delivery, instead of last-minute purchases typically seen on delivery apps.
- Hannah Gibson, Ocado Retail’s new leader, is expected to spearhead this transformation with a particular interest in same-day delivery improvements.
- Industry insiders, including those from M&S, are closely monitoring Ocado’s approach as they look to balance operational models with profitability.
Ocado announces plans to expand its same-day delivery offerings, intending to create more opportunities for customers under mounting pressure to showcase a business revival. Currently, the service is available in most UK regions but is restricted to a few thousand slots weekly, which Ocado aims to increase.
The strategy involves directing consumers to opt for larger volume orders in the same-day category. This approach is a departure from the typical demand for urgent, last-minute ingredients often fulfilled through various delivery platforms.
Hannah Gibson, who assumed leadership of Ocado Retail in the previous September, is charged with revitalizing the company. Her agenda appears to emphasize the potential enhancements within the same-day delivery segment as a critical area for growth.
There is a significant industry focus on the economic viability of rapid delivery services, an area where several market players have struggled, exemplified by the ongoing profitability challenges of companies like Deliveroo. Advisors from M&S suggest that, for operational success, either premium pricing or encouraging larger customer orders are necessary.
Retail expert Andy Adcock observes that Ocado’s pivot toward same-day services might affect local convenience stores adversely. However, he remains optimistic about the non-impact on M&S food halls, attributing this to the existing consumer behavior favoring immediate purchase needs.
Ocado’s enhanced same-day delivery strategy represents a pivotal move in its attempt to meet evolving consumer demands while seeking sustainable growth.
