Kroger inks Ocado grocery delivery deal to battle Amazon threat

FILE PHOTO: Delivery vans are lined up prior to dispatch at the Ocado CFC (Customer Fulfilment Centre) in Andover, Britain May 1, 2018. Picture taken May 1, 2018. REUTERS/Peter Nicholls/File Photo

LONDON/LOS ANGELES: US supermarket chain Kroger Co struck a deal with British online grocer Ocado to ratchet up its delivery business with the construction of robotically operated warehouses, upping the ante in the battle with Amazon.com Inc and sending Ocado shares rocketing. 

The US grocery industry is dominated by Walmart Inc and Kroger but has been in upheaval since last summer, when Amazon's US$13.7bil (RM54.41bil) deal for Whole Foods sent supermarkets scrambling to match the online retailer on home delivery.