Why Did Waitrose Stop Using Ocado? 

For almost two decades, Ocado and Waitrose had a strong partnership, with Ocado exclusively delivering Waitrose groceries to customers across the UK. However, in 2020, this long-standing relationship ended, leaving many customers confused and frustrated.

Why did Waitrose stop using Ocado? Was the split mutual, or did one party push the other away? And what has happened to both companies since the breakup?

This article explores the history of the Ocado-Waitrose partnership, the reasons behind its collapse, and the impact on both brands and consumers.

The Ocado-Waitrose Partnership: A 20-Year History

How It Started (2000-2010)

Ocado was founded in 2000 as an online-only supermarket—a pioneering concept at the time. Unlike traditional supermarkets such as Tesco and Sainsbury’s, Ocado had no physical stores and relied entirely on digital sales.

To establish credibility and attract premium customers, Ocado partnered with Waitrose:

• 2002: Ocado launched its first deliveries of Waitrose-branded products.
• 2009: The company expanded nationally, increasing its warehouse and delivery capacity.
• 2010: Ocado went public, boosting its growth potential.

At the time, the Ocado-Waitrose deal was mutually beneficial:

• Waitrose expanded its reach into the e-commerce space without needing its own online platform.
• Ocado gained access to high-quality groceries, strengthening its brand reputation.

Growth and Success (2010-2017)

Over the next decade, Ocado’s customer base grew rapidly, as more UK shoppers turned to online grocery shopping. Ocado became synonymous with Waitrose’s premium food, allowing Waitrose to compete with larger chains like Tesco, Sainsbury’s, and Morrisons in the online space.

However, tensions between the two companies began to emerge as online grocery shopping became more competitive.

Why Did Waitrose Stop Using Ocado?

1. Waitrose Wanted to Build Its Own Online Grocery Business

• By 2017, Waitrose realized that online shopping was a permanent trend, not just a niche market.
• Instead of relying on Ocado, Waitrose began developing its own online grocery platform to compete with Tesco.com, Sainsbury’s Online, and Amazon Fresh.
• By 2020, Waitrose had built the infrastructure to handle online orders independently and no longer needed Ocado.

2. Ocado and Waitrose Became Competitors

• Ocado originally started as Waitrose’s exclusive online partner, but over time, it expanded beyond just selling Waitrose products.
• Ocado launched its own-label grocery range, which directly competed with Waitrose’s products.
• This created tension between the two companies, as Waitrose wanted full control over its brand and customer experience.

3. Ocado Wanted More Control and Flexibility

• Ocado was evolving beyond just a supermarket; it was becoming a global tech-driven logistics company.
• The company signed international deals with Kroger (USA), Coles (Australia), and Casino (France) to provide warehouse automation solutions.
• Sticking to an exclusive Waitrose contract restricted Ocado’s growth potential and ability to innovate.

4. Failed Contract Renewal Negotiations

• The original Ocado-Waitrose agreement was due to expire in 2020.
• Waitrose refused to grant Ocado exclusive rights to its products beyond this period.
• Ocado, in turn, decided to seek a new retail partner—which led to its deal with Marks & Spencer (M&S).

What Happened After Waitrose Left Ocado?

Waitrose Launched Its Own Online Delivery Service

• In September 2020, Waitrose fully launched its independent online grocery platform at Waitrose.com.
• The company invested heavily in logistics, delivery infrastructure, and fulfillment centers to match Ocado’s service level.
• However, in the early months, Waitrose struggled with stock shortages and delivery delays, leading to customer frustration.

Ocado Partnered with Marks & Spencer (M&S)

• In 2019, Ocado signed a £750 million deal with M&S, which officially replaced Waitrose on Ocado’s platform in September 2020.
• This was M&S’s first-ever move into full online grocery delivery.
• The M&S range introduced new premium products, especially famous ready meals and bakery items.
• Some Waitrose customers embraced the M&S switch, while others missed Waitrose’s broader grocery selection.

Customer Reactions: Was the Split a Good or Bad Move?

Factor	Ocado & Waitrose (Before 2020)	Ocado & M&S (2020-Present)
Product Range	Large grocery selection, including organic & specialty items	Premium food selection, strong in ready meals & bakery
Brand Loyalty	Strong Waitrose customer base	Some loyal Ocado customers missed Waitrose
Customer Satisfaction	High, but tensions grew between brands	Mixed—praise for M&S quality but concerns over variety
Online Growth	Shared between Ocado & Waitrose	Ocado became more independent and tech-driven

Who Benefited More from the Split: Ocado or Waitrose?

How Ocado Benefited

• More business flexibility—Ocado could now sell its own-label products freely.
• Bigger global opportunities—Ocado expanded its tech services to international supermarkets.
• Stronger brand identity—Instead of being just Waitrose’s online partner, Ocado became a leader in grocery automation technology.

How Waitrose Benefited

• Full control over its online platform, without relying on a third party.
• More direct customer relationships via Waitrose.com.
• Greater flexibility in branding and promotions.

The Future of Waitrose and Ocado

Will Waitrose’s Online Business Succeed?

• Waitrose is still competing against Tesco, Sainsbury’s, and Amazon Fresh in the online grocery space.
• The company needs to expand delivery areas and improve fulfillment speeds to maintain a loyal customer base.

Can Ocado Maintain Its Growth Without Waitrose?

• Ocado has successfully positioned itself as a tech-driven grocery company with major partnerships.
• However, it faces rising competition, high operational costs, and growing customer expectations from M&S shoppers.

Conclusion: Why the Waitrose-Ocado Breakup Made Sense for Both Companies

The Ocado-Waitrose partnership ended in 2020 because both companies wanted more control over their own businesses.

• Waitrose aimed to build its own online delivery service rather than relying on Ocado.
• Ocado sought greater independence and a new partnership with Marks & Spencer (M&S).
• The split allowed both brands to grow separately, even though the transition wasn’t smooth for all customers.

💬 What do you think? Was the split a good move for both companies, or do you prefer Ocado when it worked with Waitrose? Let us know in the comments!