Ocado to test one-hour delivery service

Ocado has revealed a one-hour delivery service called Ocado Zoom.

The delivery proposition will best tested in West London from next month, offering customers “small batch delivery” on less than 10,000 SKUs.

CEO Tim Steiner said the launch of a one-hour delivery option in the UK was due to consumer demand, rather than in response to the threat of Amazon.

He said: “We’re always aware of [Amazon] considering global scale, reach and size, but it’s not a big factor today in the UK grocery market – the competition market is really between ourselves and the big bricks and mortar retail operations. Amazon haven’t made a big impact in the UK grocery space.”

This morning Ocado revealed an increase in revenues of 12.3% for the 52 weeks ending 2 December 2018. The company remained upbeat, despite a widening of losses it put down to investment in its solutions business. Losses went from £9.8 million in 2017 to £44.9 million in 2018.

Revenues from its retail business increased 12% to £1.48 billion, and its solutions business increased 15.8% to £123 million. While EBITDA from retail increased, the innovative solutions side of the business saw its EBITDA widen to £17.9 million.

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