Ocado Disrupts UK Retailers with Private LTE and Cloud Computing

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By Lian Jye Su | 3Q 2017 | IN-4667

 

Ocado Is Seeing Brick Growth

NEWS


If Amazon only sells fast-moving consumer goods (FMCG), it will look a lot like Ocado. A UK-based fresh food and FMCG retailer, Ocado has no chain of stores and does home deliveries all from its warehouses. With a total revenue of US$1.6 billion in 2016, the online retailer sells over 50,000 items to over 580,000 active customers. This is arguably tiny as compared to Amazon and Alibaba, global retail giants with over 400 million active users, but Ocado’s steady YoY growth (13.6% in revenue and 13.9% in active customers) and innovative approach will allow Ocado to stay competitive.

The lack of physical stores, such as those run by Asda, Tesco, and Lidl, allows Ocado to concentrate on improving its supply chain and warehouse logistics. Obviously, Amazon’s foray into fresh food market via the Whole Foods acquisition certainly validates its business model, but Ocado has developed very advanced skill sets to set itself apart from its peers.

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