Marks & Spencer has scrapped its partnership with Deliveroo as the launch of its joint venture with Ocado sees its shares rally.
M&S in March announced that it would offer online delivery for the first time in its history amid a new partnership with Deliveroo, before expanding this service to 142 stores in May.
However, the grocer has now pulled its items from the rapid delivery platform, meaning customers can only access its products online through Ocado Retail, which M&S co-owns.
“We had a temporary partnership with Deliveroo during the peak of the coronavirus lockdown, which helped customers to access M&S products without leaving their homes,” M&S told the Grocer.
“Our focus is now on our partnership with Ocado.”
The launch of its new Ocado joint venture on September 1 has sent M&S shares up 4.4 per cent to 108.60p, while Ocado’s shares jumped 10.7 per cent to 2605p.
Despite representing a mere 1.7 per cent of the UK’s overall grocery market, Ocado is now valued at just £2 billion less than Tesco, which owns a whopping 27 per cent of the market.
Deliveroo meanwhile has since partnered with Waitrose, which M&S replaced on Ocado’s platform after a 19-year partnership.
It has become one of the few companies to emerge from lockdown in a stronger position than when it went in as demand for grocery delivery saw numerous grocers turn to the company to quickly expand their delivery capabilities.
Aside from M&S and Waitrose, Aldi, Co-op, Majestic Wine, Booths and Lloyds Pharmacy have all partnered with Deliveroo to offer delivery on essential goods in as little as 30 minutes since the start of the pandemic.