May 9, 2019

Morrisons seeks tie-ups to boost online service

Supermarket chain Wm Morrison is considering expanding its relationship with Amazon and striking new partnerships with groups such as Uber Eats as it looks to boost its online service after paring back an exclusive delivery deal with Ocado. Morrisons struck a deal with Ocado in 2013 that enabled it to break into the online grocery business. Morrisons said its decision to move to multiple online suppliers was not linked to the M&S deal with Ocado. Morrisons will vacate the warehouse until 2021 in return for lower pick fees, and will use its stores to service online orders as well as its Dordon CFC. In the meantime it will stop paying the start-up and running fees associated with Erith CFC, resulting in a cost saving. In 2016 it broke free of arrangements that prevented it from picking online orders off shelves in its own stores in areas not served by Ocado's fleet, in return for Morrisons renting extra space in a new Ocado warehouse.

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