British robotics firm signs seven-year deal with Ocado

Ocado has extended a tie-up with a British technology company to manufacture more of its robots as it banks on the boom in online grocery shopping.

The “multi-million” pound investment in Tharsus, based in Blyth, Northumberland, means Ocado can export more of its technology swiftly to other countries.

The online grocer has been beefing up the production of robot factories for supermarkets worldwide to capitalise on surging demand for online deliveries.

It currently has seven international deals with chains including Kroger in America and Casino in France, plus Morrisons in the UK.

The deal will last until at least 2024 and is meant to create 100 jobs in the area.

Online shopping as a proportion of all shopping in the UK has rocketed during lockdown

“Having Ocado as a customer has a knock on effect on a business like ours,” said Brian Palmer, chief executive of Tharsus. “It helps us build our reputation.”

The robot manufacturer also works with the likes of DHL and Rolls Royce. It first started working with Ocado seven years ago.

“We wouldn’t build a product that would compete directly with Ocado – because of our relationship with [them], we’d always let them know in advance if there are any conflicts of interest,” Palmer added.

Earlier this month Ocado raised £1bn from investors as it looks to cash in on the surge in online deliveries sparked by coronavirus.

As the nation went into lockdown, Ocado was overwhelmed by shoppers flocking to its website – to the extent it was forced to shut its website for an overhaul. It was operating at full capacity to keep up with demand.

Meanwhile, its traditional rivals managed to double their capacity by having more pickers in stores, which is easier to manage short-term.

Source: https://www.telegraph.co.uk/business/2020/06/29/british-robotics-firm-signs-seven-year-deal-ocado/

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