Ocado share price tumbles and Amazon’s Pantry grocery delivery is to blame
Shares in upmarket online grocery delivery company Ocado took a hammering in morning trading after news Amazon is expanding its fresh produce service, Pantry, pegging the retail giant as a serious contender in the already highly competitive food delivery market.
Shares were down as much as 7.9 per cent on Wednesday, touching a 12 month intraday low of 299p per share, making a further decline on Tuesday's fall of more than four per cent.
Amazon is planning ambitious expansion of Pantry, the grocery delivery service which is currently on a smaller scale to the similar US service Amazon Fresh but can deliver in some areas within just 60 minutes. Thousands of new products wil be added to its existing line up.
Amazon, on the other hand, is celebrating a stellar Christmas, clocking up three million new Prime Members and its busiest ever festive season, sending shares to an all-time high in Tuesday's post-Christmas trading.