Ocado delivers growth into Kent

Ocado van delivers goods
Ocado van delivers goods

Ocado, the delivery service for online Waitrose customers, is expanding its operations in Kent.

Since opening its New Hythe, Aylesford, depot in 2003, the familiar tea caddy delivery vans have served a limited number of the county’s residents.

But the distributor has extended the range of its operations to an extra 139,000 customers. A spokesperson said the extra work would be handled by the existing workforce.

Ocado prides itself on good customer services, with specific times for delivery and delivery drivers taking the groceries into customers’ kitchens and even unpacking the goods. Ocado recently won an Online Green Award for its environmental policies.

Jon Rudoe, head of retail at Ocado, said: "Customers in Kent have been really enthusiastic about our delivery service and that’s created demand from people in the county who live outside of our current delivery area. From this week, a further 139,000 homes can access an Ocado delivery."

He said online delivery was environmentally friendly because customers did not have to drive to the store and it avoided the need for a traditional store. "Every time one of our vans goes out, 40 cars will be kept off Kent roads which is great for the local environment."

Three former Goldman Sachs bankers Tim Steiner, Jason Gissing and Jonathan Fairman set up Ocado in 2002 after a pub discussion about the inadequacies of existing delivery models.

They hawked their idea for a high-quality, timed online delivery service around the main supermarkets such as Tesco and Sainsbury’s but it was only the John Lewis Partnership that warmed to the plan and invested in the project. It now has a 24 per cent stake.

It became a City phenomenon, with annual sales rising to around £340 million last year. Last year, there was speculation about a possible stock market flotaton. However, the business has been loss-making since its formation.

John Lewis reported in January that Waitrose’s share of the online grocery market through Ocado was approaching 20 per cent and that Ocado’s trading loss was £7.1 million. Waitrose had total annual sales of £4 billion through its traditional and online business.

Ocado has been good for Waitrose, taking the brand into areas where it did not have stores, and Waitrose has helped Ocado build a brand on the back of a well-regarded store name.

The service is now available to more than 13.5 million households across the South East, the Midlands, the North West and more recently the South Coast.

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