Partner Interview
Published July 15, 2024
Ocado Technology, Kroger & Online Grocery Economics
inpractise.com/articles/ocado-group-ocado-technology-kroger-and-online-grocery-economics
Executive Bio
Former CEO at Ocado Solutions
Interview Transcript
Disclaimer: This interview is for informational purposes only and should not be relied upon as a basis for investment decisions. In Practise is an independent publisher and all opinions expressed by guests are solely their own opinions and do not reflect the opinion of In Practise.
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I want to delve into more details about those choke points and the detailed economics. But before we do, you mentioned the Kroger situation, which often involves a degree of PR speak in these announcements. Do you think there's a possibility that the technology provided or installed by Ocado at some of those facilities is not functioning as planned or engineered?
I need to be slightly careful with privileged information. I know, but there has obviously been some commentary in the public domain by both Ocado and Kroger regarding this. The Ocado technology, in terms of performing its intended functions in Kroger, is doing exactly that. There have been no issues with the equipment or the software running the warehouses. You won’t find any commentary from Kroger suggesting that the Ocado technology doesn’t work. Of course, as with any technology setup, the end-to-end process involves both Ocado technology and Kroger technology, particularly because Kroger had a significant ecommerce business. Unlike most Ocado partners, Kroger chose to continue running their existing webshop and decided to integrate it with the Ocado backend.
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