Morrisons could expand partnership with Amazon as it scales back Ocado contract

Morrisons has revised its partnership with online grocer Ocado, which will allow it to reach out to other companies to expand its online operations.

The UK’s fourth largest supermarket originally secured a deal with Ocado back in 2013, which went on the see Morrisons take capacity at Ocado’s warehouse network, meaning it was able to offer home delivery via Ocado’s supply chain for the first time.

It now appears that Morrisons is reneging on the deal’s exclusivity, and will now look to other companies to help expand its online offering, including Amazon and Uber Eats.

READ MORE: Ocado buys £7m stake in robotic “chef” firm Karakuri

Yesterday it announced that its revised agreement with Ocado could well see it have “more than one digital partner”, and that this “could certainly include doing more with Amazon”.

Morrisons currently sells its own products on Amazon’s marketplace, but has not yet expanded its relationship to include the use of Amazon’s extensive delivery network.

Its chief executive David Potts said Morrisons was currently in talks with a number of companies.

The grocer has also returned full use of Ocado’s Erith automated warehouse to the company, following a devastating fire at Ocado’s Andover site which destroyed the site.

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