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Ocado finally shows a profit in grocery home delivery

This Christmas is likely to see yet another big increase in demand for home deliver. People often prefer to order via the internet from home and have goods delivered, than to fight a way through the crowded shop and streets.
The problem is how operators can make a profit from this booming market..
So I was particularly interested to read in the Sunday Times that Ocado has finally made a profit, if only at an operating level. Ocado started back in 200 and set up a completely new system delivering groceries to homes. A big stake in the company is taken by the John Lewis Partnership. It uses very distinctive Mercedes-Benz Sprinter vans. I can say from experience that Ocado provides an excellent service and is much better than its rivals.
But home delivery companies generally suffer from having high costs while customers want the goods delivered for virtually nothing.
Yet as Ocado (and companies like Wincanton with the Lane Group), show that it is possible to provide good service and make a profit.
Well done Ocado.

Ocado web site

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This page contains a single entry from the blog posted on November 27, 2007 5:29 PM.

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