Asda has struck a new partnership with Ocado Group to upgrade its online grocery operations as the supermarket looks to improve customer experience and regain market share.
The grocer, which is the UK’s third-largest supermarket, will roll out Ocado’s Smart Platform technology across its website, mobile app, in-store picking and home delivery service from 2027.
The partnership will begin with an upgrade to Asda’s website and online shopping experience, designed to make the platform more stable and easier to use for the millions of customers who shop with the supermarket online each year.
The revamp will include improved search, more relevant product recommendations and a simpler checkout process.
Asda said further upgrades to in-store picking and last-mile delivery will follow, helping stores manage orders more efficiently, improve on-time deliveries and increase the number of available delivery slots by making better use of its existing fleet.
The supermarket currently fulfils more than 700,000 online grocery orders a week and trades from around 1,100 stores across the UK.
Under the agreement, Asda will retain full control of its customer offer, pricing and online operations. Scheduled home delivery and click-and-collect orders will continue to be fulfilled from Asda stores and existing fulfilment hubs.
Orders placed through rapid delivery partners including Deliveroo, Just Eat and Uber Eats will be picked by Asda using Ocado’s technology before being delivered by the third-party provider.
The partnership comes as Asda looks to reverse a recent loss of market share to larger rivals Tesco and Sainsbury’s.
Asda executive chairman Allan Leighton said: “Asda is the cheapest full-range supermarket, as consistently shown by independent price comparisons from Which? and The Grocer, and has a large, well-established online offer.
“We know that continued success in this highly competitive market is dependent on providing a positive experience for customers every time they shop.
“Partnering with Ocado will strengthen our online offer and provide a consistent and high-quality experience for millions of shoppers, from order through to delivery, while supporting our Formula for Growth.”
Ocado’s in-store fulfilment solutions are already used in more than 1,000 grocery stores worldwide, while the wider Ocado Smart Platform supports around 70 million orders each year.
The deal marks a significant new technology partnership for Asda as it seeks to sharpen its digital grocery offer in an increasingly competitive UK food retail market.
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