Ocado Expands Zoom Service Outside Of London

Namnews, 24th November 2022

Ocado has today expanded its rapid grocery delivery service Zoom outside of London, despite signs that the channel is experiencing weaker demand.

The online grocer’s fourth Zoom site is based in Hunslet, Leeds. The purpose-built, automated warehouse contains 70 robots that pick and pack the products, while humans assemble the final orders ahead of delivery by electric vehicles, including e-trikes and e-mopeds.

Ocado is predicting up to 10,000 orders per week from Leeds residents.

“Ocado is famed for its world-leading technology, and we’re delighted to be bringing our rapid grocery app to the city of Leeds as our service expands outside of London,” said Zoom by Ocado Director, George Dean.

The move comes amid reports that other rapid delivery firms are shedding riders and closing warehouses across the UK as the bubble bursts for ultra-quick grocery drop-off services.

Some of the biggest names in the on-demand grocery sector, which persuaded investors during the pandemic that they were going to replace corner shop purchases with 15-minute deliveries, are pulling out of cities and towns as consumers desert their apps and doubts grow about the viability of the industry.

NAM Implications:

• All they need is a concentration of population…
• …and demand.
• But given that the real payoff for Ocado has to be selling on their know-how…
• Every new location builds their expertise.
• And they are outsourcing the costly part, fulfilment…
• Watch this space…