Ocado is set to expand its same-day delivery options, creating more slots for shoppers as it faces increasing pressure from part-owner M&S to begin showing signs of a turnaround.
Currently, the online grocer offers same-day delivery options in most locations across the UK, but availability is limited to a few thousand each week.
According to the Telegraph, Ocado will focus on getting shoppers to order larger deliveries for same-day slots, rather than just last-minute ingredients which are typically sold on delivery apps.
Hannah Gibson, who took over as the boss Ocado Retail last September, has been tasked with turning the business around and is understood to see potential for improvement in the same-day delivery area.
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The title said M&S insiders are watching the plan closely, cautious that the economics around rapid delivery have so far failed to add up.
Deliveroo are a prime example, failing to turn a profit in the 10 years since its launch.
To make same-day work, one M&S source told the Telegraph operators either need to sell at premium prices or sell larger orders, with the race not so much for market share but to find a suitable operating model.
Andy Adcock, a retail veteran and former food managing director at M&S, said that Ocado’s shift to same-day could mean local convenience stores lose out.
But he does not believe this will impact M&S food halls as its customers are “very much same-day shoppers anyway”.
