Sobeys Canada Partners With UK’s Ocado To Develop Online Grocery Delivery Business

Loblaws Canada and Amazon had best watch out, as Sobeys Canada has recently announced their bold decision to amp up their online grocery delivery service by partnering with the UK supermarket brand Ocado Group.

Since Amazon’s acquisition of Whole Foods Market last year, the multi-national e-commerce site has been putting pressure on Canadian grocers, such as Sobeys, to make significant improvements to their online grocery delivery systems.

“We want to be the other player,” Sobeys spokesperson Cynthia Thomspon said in an interview with Bloomberg. “The grocer that is competing with them head on.”

And this deal between British Ocado and Sobeys intends to launch the Canadian grocer into competing head on with the tech giant, specifically when it comes to their online grocery business.

Ocado will provide Sobeys with engineering and tech support to help build their online brand, an expertise that can be seen in Ocado’s own successful launch of and several other specialist banners.

The two firms are going to be setting up their main warehouse in the Greater Toronto Area over the course of the next two years, where they will build a customer base by providing services to 1,500 stores across the region falling under brands like IGA, Safeway and Thrifty Foods.

Sobeys has made this announcement just on the heels of their competitor Loblaw Companies Ltd., who also said they would be outsourcing their home delivery services to an international company. Loblaws announced they would be partnering with the California-based Instacart to provide home delivery services starting in Toronto and would later be adding Vancouver to the cities with home delivery.

Click here to learn more about the Sobeys and Ocado partnership.

One response to “Sobeys Canada Partners With UK’s Ocado To Develop Online Grocery Delivery Business”

  1. Ciel says:

    I read the article in the Toronto Star today and question the two year rollout. I seem to recall that the late Target chain had loads of warehouses in the GTA and elsewhere-Walmart only bought some of them. I’m sure that Sobeys could find a warehouse it owns and update it for the Ocado system or find a very recent warehouse build and work on it.
    With other store chains that consolidated their warehouse locations, there must be something on the market now that Sobeys could get permits and builds done within a year’s timeframe.
    The other funny news is about the Amazon Go store having a queue outside of people who fell for the no lines purpose of the app grocery shopping concept store.

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