Asda’s online shop is getting a complete Ocado rebuild
Key Points
- Asda's online business will relaunch on Ocado's platform in 2027
- The deal covers Asda's webshop, in store picking software and delivery routing
- Asda joins Morrisons and Ocado Retail on the Ocado Smart Platform
- Orders will come from Asda stores rather than automated warehouses
- UK online grocery now accounts for 13.4% of the total market
Asda will relaunch its online grocery business on Ocado’s technology platform from 2027, replacing its webshop and overhauling how stores pick and deliver orders.
Ocado confirmed the timeline in its half year results on Thursday (16 July), following the partnership announcement in May. The deal covers Asda’s customer facing webshop, Ocado’s In-Store Fulfilment software for picking orders in Asda stores, and routing technology to plan last mile deliveries more efficiently.
Ocado’s ecommerce platform powers features such as machine learning driven search, which the company calls vector search, personalised product discovery, and slot availability tools designed to convert more shoppers. Ocado said recent platform updates have reduced friction for new customers and accelerated app adoption among its existing partners.
Ocado’s In-Store Fulfilment software directs staff around supermarket aisles on optimised routes, improving picking speed and substitution accuracy. Saudi retailer Panda rolled out the same system in 2025 before committing to Ocado’s full ecommerce platform this year, and Lotte in South Korea followed a similar path.
Asda joins a growing club
The agreement makes Asda the latest UK grocer to run on Ocado technology. Morrisons already operates its online business through the Ocado Smart Platform, and Ocado Retail, the joint venture with M&S, migrated fully onto it last year.
Asda has fought declining market share while rivals invested heavily online, and the UK online grocery channel keeps growing, now accounting for 13.4% of the total grocery market according to Nielsen, up from 12.5% a year ago.
Unlike Ocado’s deals with Morrisons and international partners such as Kroger, the Asda agreement does not include automated warehouses. Asda will fulfil orders from its store estate using Ocado’s software, a lower cost route that avoids the capital spend and long build times of dedicated fulfilment centres.
