Ocado's robotic future under threat as Kroger looks to Instacart

FILE PHOTO: An undated handout photo shows Ocado technology at a Kroger fulfilment centre in the U.S. obtained by Reuters on June 15, 2022. Kroger/Handout via REUTERS/File Photo

LONDON (Reuters) -U.S. retailer Kroger's decision to close three of the eight automated warehouses it built with Ocado and expand its ties with the likes of Instacart and DoorDash highlights the challenge the British firm faces from rapid delivery firms.

Ocado sells its cutting-edge technology to retailers like Kroger, allowing them to pick and dispatch online food orders from vast robotic warehouses.