The already established supermarket and delivery partners have agreed a new contract that will overhaul their existing deal – giving customers a better service and improving Morrisons own market share.
The negotiations included the green light for Ocado to develop a Store Pick solution for Morrisons.com, allowing customers to pick-up groceries ordered online, even in stores not normally covered by delivery. The software that enables this process will be provided by Ocado, with Morrisons staff carrying out the requests made online.
Under the new arrangement, Morrisons will also be no longer obligated to share its future online profits with Ocado, instead agreeing to reduce its research and development fee. Ocado is also not allowed to serve certain grocery retailers including Tesco, Asda, Sainsbury’s, Aldi and Lidl.
Morrisons chief executive David Potts said: “The new investments in online growth are further examples of Morrisons building a broader business and will allow millions more customers all over Britain to enjoy Morrisons good quality fresh food and great value for money. As food maker and shopkeeper, we continue to ‘follow the customer’ and move towards achieving capital light, profitable growth online.”