Market observers see potential Amazon/Ocado tie-in as a shrewd move

Although Amazon has not given any official confirmation that it is interested in a potential tie-in with Ocado, some market observers have already praised it as a smart move. David Jinks, Head of Consumer Research at ParcelHero.com, for example, told Post&Parcel today: ‘Amazon’s proposed tie-in with Ocado makes perfect sense. Amazon is clearly aiming to be the pipe through which we buy everything. It has already introduced its Amazon Fresh and same day delivery service in a number of UK cities, and Ocado’s online food business gives Amazon the increased scale it is looking for.”

Jinks added: “Amazon will look to offer its Prime members free Ocado deliveries to help increase customer loyalty. Developing its own delivery capability is key to Amazon’s future, and Ocado’s network helps bring economies of scale to its Fresh services.”