02 September 2020 06:32
Online food orders have rocketed since lockdown and Ocado and its investors have been a huge beneficiary. But as the company moves away from long-time partner Waitrose, does its potential stack up against its share price? Ocado has dropped its partnership with Waitrose after two decades in favour of Marks and Spencer's food business. For investors, the partnership with Waitrose, and its ability to sell its online delivery software to other supermarkets, has been fruitful. The share price has nearly doubled this year and risen 527pc since the start of 2018.
This is all despite the firm never posting a profit. It has also been unable to meet the demands of the huge swathes of shoppers moving online during the pandemic and was forced to deactivate its app. Even this week, the change over to M&S was not without complications as hundreds of orders were axed at the last minute. Meanwhile, rival and supermarket giant Tesco, has became the first retailer in Britain to complete one million online grocery orders in a week. So where does this leave Ocado? Have investors got carried away with Britain's best-known tech stock or is it just a matter of time before its software is the go-to tool for online grocery shopping?