Speculation continues to grow about the purported interest Amazon has in acquiring Ocado in order to be able to swiftly develop its Amazon Pantry service offering in the UK. The online giant has set about recruiting a further 2,500 staff, primarily for operations roles but also for London head office and is understood to be keen to develop services for its Prime customers here along the lines of its Fresh food delivery operation in the USA. Meanwhile, Ocado has announced the appointment of Andrew Harrison as a non-executive director. Harrison is deputy CEO at Dixons Carphone and this move has provided additional weight to the rumours doing the rounds.
From a practical standpoint, there would be a major benefit for Amazon were it to acquire Ocado as it would gain the distribution infrastructure and the skilled management team with which it could quickly extend its range into fresh food lines as well as Ocado’s growing base of regular customers. Ocado would, of course, find Amazon to be a most formidable competitor if a deal doesn’t go ahead. Ocado’s share price has understandably risen since the speculation began.
Neither party could be pressed to confirm or deny the rumours as at 13.30 on 29th January 2016.
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