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

By James Davey

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.

But Kroger said on Tuesday that three of the warehouses had not met financial expectations, and that it would look to expand tie-ups with companies that not only offer faster deliveries but can be supplied from existing stores, thereby reducing costs.

“Consumers really want items that they’re ordering online to be delivered same day, and if possible, they would like to get