Tuesday 5 January 2016

Amazon Pantry could help itself to Ocado's lunch, but the combination impacts us all

                                                                                 Source: Wired via Business Insider

An article in Business Insider, acknowledges that the introduction of Amazon Pantry, already impacting Ocado shares, down 35% since June 2015, is hurting Ocado, but reports that Goldman Sachs has an interesting theory about how this might actually be good for Ocado.

Essentially, apart from putting Ocado into the takeover frame, Amazon Pantry will add to pressure on the mults, pointing them at possibly leasing Ocado's online platform and delivery infrastructure, and, as per Paul Clarke's presentation above, online grocery delivery is more complicated than general merchandise.

However, the real issue is that the combination of Amazon and Ocado expertise is raising the online bar to such an extent that other retailers may not even bother...

NB Making a difference to your online approach in 2016:  If you want a real insight into the unprecedented standards being set by Ocado in developing an online multi-product delivery-pipeline into your home, see CEO Paul Clarke's 16min +10min Q&A presentation to the Wired Retail conference above

No comments: