UK’s Ocado looks to shake up SEA’s grocery tech

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Hello reader,

“…just another day in the company’s journey” is not how I’d describe it if my startup was ringing the opening bell. But unlike Henry Chan’s ShopBack, my startup hasn’t just banked US$30 million as it gears up for an IPO.

To be fair, my firm – no, all of my firms – exist only in my mind, but a girl can dream.

After all, we are living in an age when robots are whizzing around somewhere in a logistics warehouse, collecting items people have ordered from the comfort of our homes – all without any humans in sight.

The logistics warehouse in this context is one developed by the Ocado Group (OCDO, LON), a UK-based online grocery company listed on the London Stock Exchange.

Ocado’s plans to expand into Southeast Asia are also the subject of our Big Story.

The company has partnered with South Korea’s Lotte Group – a conglomerate that operates over 1,000 department stores, supermarkets, and hypermarkets – to build six multistoried customer fulfillment centers (CFCs). By design, CFCs are highly automated warehouses that tap into AI, big data, etc.

While the news of this partnership sent Ocado’s shares soaring, my colleague, Simon, looks into a pertinent question: Is this model viable for Southeast Asian countries with low wages? He also dives into the ripples this partnership could have on the local tech scene – an equally significant question.

— Nikita

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The Big Story

Grocery tech firm Ocado’s SEA entry could shake up the scene

Ocado, which helps set up grocery chains with their own online operations, is eyeing a slice of Southeast Asia’s fast-growing online grocery market.

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3 Trends to keep an eye on

Hot stocks, earnings reports, restructuring, activist investor pressure and more.

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2 Eye-popping numbers 👀

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1 The one you didn’t see coming

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