Ocado

Ocado

Ocado is a British online supermarket that operates in the UK and internationally. In contrast to its main competitors, the company has no chain of stores and does all home deliveries from its warehouses. Ocado has been voted the best online supermarket in the UK by Which? readers every year since 2010.

History

Ocado was established in the UK in April 2000 by three former Goldman Sachs employees: Tim Steiner, Jonathan Faiman, and Jason Gissing. The initial concept was to create a new kind of grocery delivery service, using technology to sell groceries online, a relatively new concept at the time.

Business Model

Ocado's business model is based on operating as an online-only retailer. This means that it does not have any physical stores, which allows it to keep costs low and focus on efficient delivery. The company uses a centralised distribution model, which means that all orders are fulfilled from a single, large warehouse, known as a Customer Fulfilment Centre (CFC).

Technology

Ocado uses a range of technologies to operate its business. This includes its webshop, mobile apps, and a complex logistics platform that includes warehouse automation, delivery route planning and optimisation, and a real-time delivery tracking system. The company is known for its use of robotics in its warehouses and has developed its own proprietary platform, known as Ocado Smart Platform (OSP), which it licenses to other retailers.

Ocado Smart Platform

The Ocado Smart Platform (OSP) is a proprietary solution for operating online retail businesses. It includes a modular and scalable hardware and software platform, and is offered as a managed service to partners around the world. The OSP includes the full site, warehouse and delivery systems required to operate an online grocery business.

Partnerships

Ocado has formed several partnerships with other retailers to use its Ocado Smart Platform. These include Morrisons in the UK, Kroger in the US, Sobeys in Canada, Coles in Australia, and Groupe Casino in France.

Financial Performance

Ocado's financial performance has been mixed. While the company has grown rapidly and has a large customer base, it has also faced challenges in terms of profitability. However, the company's strategy of licensing its technology to other retailers has provided a new source of revenue and has been well received by investors.

Criticism and Controversy

Ocado has faced criticism and controversy over various issues. These include its treatment of workers, its environmental impact, and its business model. Despite these challenges, the company has continued to grow and innovate in the online grocery market.

See Also

• Online grocery delivery
• E-commerce
• Warehouse automation
• Retail technology

External Links

• Official website