August 26 2008

Ocado launches subscription-based delivery service

Ocado on Demand customers pay a flat fee to get all their deliveries for free over a pre-set period of time

Ocado has launched an Amazon-style subscription-based delivery service that allows customers to pay in advance for their deliveries in exchange for a one-off flat fee.

With Ocado on Demand, customers pay £40 for three months of deliveries, £60 for six months and £105 for a year.

'If you are spending £5 a week on delivery fees for 12 weeks, a season ticket for £40 provides a saving," Ocado co-founder Jason Gissing told the Mail on Sunday. "It is about keeping customers happy so they will keep shopping with us."

Ocado's radio ad for the new service makes it clear, though, that a minimum spend applies to each delivery, that Christmas deliveries are not included and that the service will be available in selected areas only.

by Sarah Clark (Web Editor)