This decision to pair with Ocado is among the various moves in recent times undertaken by the company to strengthen its online grocery shopping services.
Coles, the Australian supermarket chain, recently announced that it has locked a deal with British online supermarket Ocado. Coles aims to boost its presence in online grocery services industry by December 2023 through the current deal.
According to the agreement, the company is now entitled to use Ocado’s proprietary software, Ocado Smart Platform (OSP) for the organization’s website as well as mobile applications for providing a rich customer experience. Ocado is also going to share its ‘last-mile-routing-management-technology’ with the Australian supermarket chain for effective delivery.
Colesplans to build two multi-temperature and automated fulfillment centers in Sydneyand Melbourne by 2023. With them, the Australian supergiant is aiming to handleproducts between AU$500M to AU$750M per year.
Coles would be paying around AU$130M-AU$140M to Ocado for the next 4 years as an obligatory payment for the installation purpose, equipment maintenance at the fulfillment center and licensing of the software.
This agreement is said to be the 5th major overseas deal for Ocado in less than eighteen months.
As per the expectations of Coles, this agreement is set to double the organization’s home delivery capabilities as well as increase its online sales by AU$1billion. As of now, Coles is said to have the annual sale of around AU$40 billion in which the online sales accounts for approximately AU$1 billion of the total sale.
Coles Online is known to deliver groceries to nearly ninety percent of the nation’s households. The company’s database has more than 1000 click & collect locations in the country and is renowned for providing same-day delivery for maximum customer-satisfaction.
This decision to pair with Ocado is among the various moves in recent times undertaken by the company to strengthen its online grocery shopping services. Moreover, it has already set strong partnerships with eBay to boost sale of groceries in the local online market. Also, it has signed a tie-up with UberEats on a trial basis for the delivery of ready-to-eat as well as ready-to-heat food items.