Asda Ocado Deal Brings Online Deliveries From Next Year
Asda ocado will use Ocado technology for home deliveries from next year, after the supermarkets agreed a deal on Friday that pushes the software into a bigger share of Asda’s online grocery operation. The rollout reaches store deliveries, dark stores from early 2027, click and collect, and orders placed through Uber Eats, Deliveroo and Just Eat.
Leighton sets the online target
Allan Leighton said the partnership would strengthen Asda’s online offer and deliver a consistent and high-quality experience for millions of shoppers, from order through to delivery, while supporting the supermarket’s formula for growth. The deal gives Asda a new technology base for a business that has been under pressure since the 2021 takeover by TDR Capital and Mohsin Issa, when its UK grocery market share stood at 14.3%.
11.5% is the share Asda now holds in the UK grocery market, according to Kantar data, leaving it just above Aldi on 10.8%. The move matters because it ties a weaker market position to a more aggressive online push, rather than a broad store overhaul or a warehouse expansion.
Ocado shares gain 9%
9% was the rise in Ocado shares on Friday morning after the deal was announced, a sharp move for a group whose share price had already collapsed from more than £27 to £2.08 before the announcement. For Ocado, the Asda agreement adds another major retail client after a period in which its warehouse partnerships have taken repeated hits.
26 years after Ocado was founded, the company is still working to prove that its software can scale across retailers without relying on its robot warehouses in this case. Asda said this deal will not use those robot warehouses, instead drawing on Ocado’s underlying technology for home delivery, store delivery, click and collect, and third-party app orders.
Early 2027 rollout
Early 2027 is when Ocado software will start handling Asda deliveries from stores and dark stores, extending a system that begins with home deliveries next year. Tim Steiner said the UK remains one of the world’s most competitive and fast-evolving online grocery markets, where technology, scale and continuous innovation are increasingly important for retailers looking to maintain leadership positions.
For Asda, the practical change is straightforward: the online order path is being rebuilt around Ocado software before the dark-store element arrives in early 2027. For shoppers, that means the same supermarket is asking a technology partner to sit behind more of the transaction, from the moment an order is placed on a website or app to the point it arrives at the door.
