Company plans new activities in international grocery markets
Tech exclusivity expires in most markets, including with Kroger in US
Ocado faces competition from DoorDash and Instacart
Shares down 0.4%, reversing earlier gains
Adds graphic, details on contracts and strategy in paragraphs 1-3, 5-7, shares in 9-10
By Ankita Bora and Pushkala Aripaka
Dec 30 (Reuters) - Ocado OCDO.L said on Tuesday the exclusivity of its agreements to provide retailers including U.S. grocery chain Kroger KR.N with pickup and dispatch technology has ended in most markets as previously signalled, allowing it to sign on more partners.
The British group sells retailers its cutting-edge technology, which allows them to pick and dispatch online food orders from vast robotic warehouses, typically for 12 months in exclusive contracts.
But in recent years, Ocado has faced pressure from rivals like DoorDash DASH.O and Instacart CART.O, despite having had a head-start on both, as companies increasingly look for faster and cheaper shipping options.
The British technology group said in its half-year results in July that it expected to roll off exclusivity arrangements by the end of the year in the majority of markets.
Besides Kroger, Ocado has 12 other international partners, including Aeon 8267.T in Japan, Lotte Shopping 023530.KS in South Korea, and Coles COL.AX in Australia.
The company did not provide details on which other exclusivity agreements had expired. Its partnerships in Britain were unaffected.
Ocado now expects to start new commercial activity in several international grocery markets, it said.
"As we continue to support all of our partners to improve and grow their online businesses, we will also now bring the full range of Ocado's AI-powered and robotic solutions back to multiple markets," CEO Tim Steiner said in a statement.
Ocado shares were down 0.4% at 238.8 pence by 0927 GMT on Tuesday, having earlier risen as much as 2.2%.
Its shares have tumbled about 22% this year as some analysts questioned Ocado's ability to pick up more business.
Its challenges were underscored in November when Kroger, Ocado's most important partner, decided to close three of the eight automated warehouses it built with the group.
Ocado: Rise and Fall https://reut.rs/4oTADiK
(Reporting by Ankita Bora and Pushkala Aripaka in Bengaluru; Editing by Nivedita Bhattacharjee and Jan Harvey)
((Ankita.Bora@thomsonreuters.com;))