Tuesday 19 January 2016

Amazon Rumoured To Be Eyeing Tie-Up With Ocado

City rumours reported in The Daily Mail yesterday suggested that Amazon is preparing to make an approach for Ocado as part of its plans to launch a full grocery delivery service in the UK.

NAM Implications:
  • For Amazon this means leap-frogging years of food-delivery expertise in the UK’s most concentrated M25 market
  • For Ocado, a takeover by Amazon provides a means of capitalising on their investment to date in leading-edge fulfilment and a degree of food-delivery experience that far outranks* Amazon Fresh, besides providing an additional revenue stream via third party retail usage of their facilities
  • For the mults, already tempted to outsource fulfilment to a 'manageable' Ocado, joining with the biggest elephant in the room might be too tight a squeeze…
  • ...and no mention of money, because the potential gains are so obvious for Amazon…
*See Paul Clarke Ocado presentation 

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