Ocado, the online operation of UK food retailer Waitrose, is rolling out to 1.2 million homes in London having secured an extra £20m (US$29.9m).
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The Internet service has been trialing its system in Hemel Hempstead but is now ready to launch. It will then grow into other parts of the UK.
Customers can buy Waitrose products from the Ocado website and the company will deliver the groceries at a specified time.
Waitrose’s owner, The John Lewis Partnership, has taken a 40% stake in Ocado, having invested £46m with another injection of £17.75m coming this week in the form of warrants. UBS owns 11% and the rest of the shares are owned by Ocado directors, including joint managing directors Nigel Robertson and Roger Whiteside who left Marks & Spencer’s food division two years ago.
Ocado says it will beat rival online supermarkets like Tesco.com with better service. The Waitrose operation will deliver within a one hour period compared with its rivals’ two hour commitment. Ocado also says it will keep delivery costs low at £5 for bills up to £75 and free for anything more. It will also have a greater range of available products.
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By GlobalDataBy David Robertson, just-food.com correspondent
