Asda has struck a long-term partnership with Ocado Group to upgrade its online grocery operations, with the retailer set to deploy Ocado’s technology platform across its ecommerce business from 2027.
The agreement will see Asda replace its existing ecommerce infrastructure with Ocado Smart Platform (OSP), covering both its store-based and dark store fulfilment operations. The rollout will include Ocado’s webshop technology, in-store fulfilment solutions, and software designed to improve last-mile delivery planning and route efficiency.
Asda currently fulfils more than 700,000 online grocery orders each week through a network of stores and dedicated fulfilment sites.
The two companies will work together over the coming months to prepare for a planned go-live in early 2027. Once implemented, the platform will support a range of online shopping services, including scheduled deliveries, short lead-time orders and click-and-collect. Asda will also use the technology to process and fulfil orders placed through third-party delivery platforms including Uber Eats, Deliveroo and Just Eat.
Tim Steiner, chief executive of Ocado Group, said the partnership would support the next stage of Asda’s online growth in an increasingly competitive grocery market.
“We’re delighted that Asda has chosen Ocado to support the next phase of their online growth,” he 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.”
Steiner added that Asda would gain access to a platform that processes more than 70 million orders annually worldwide and supports grocery retailers across 11 countries.
Asda executive chairman Allan Leighton said the partnership would help strengthen the retailer’s online proposition and improve the customer experience.
“We know that continued success in this highly competitive market is dependent on providing a positive experience for customers every time they shop,” he said. “Partnering with Ocado will strengthen our online offer and provide a consistent and high-quality experience for millions of shoppers, from order through to delivery, while supporting our Formula for Growth.”
Ocado said the deal is not expected to have a material financial impact during its 2026 financial year. The company reiterated its expectation of becoming cash-flow positive during the second half of the current year, with full-year cash-flow positivity anticipated in 2027.