Yahoo Finance Tesco trials grocery delivery by drone
Tesco is preparing to test grocery delivery by drone after boss Dave Lewis admitted the business has been too slow to embrace the online revolution.
The supermarket has teamed up with drone delivery start-up Manna to trial shopping air-drops next month at a store in Ireland.
It revealed the scheme as Mr Lewis announced a search for tech start-ups which can help modernise Tesco, the final step of a revival strategy launched when he took charge six years ago. Mr Lewis is stepping down next month after declaring the turnaround complete.
He said: “We are a big business, so trying to put innovation through [corporate] governance can be very slow sometimes. You don’t need me to tell you that the pace of change is ever increasing.”
The grocer set up a new innovation team a year ago led by former Tesco Mobile chief Claire Lorains. It is focusing on food and drink; how Tesco harnesses the data gathered through its Clubcard loyalty programme; robotics and automation; and coming up with greener packaging and recycling plans.
Tesco has been working with tech entrepreneurs in London, San Francisco and Israel to come up with ideas. Under its so-called Red Door initiative, anyone can suggest ways to modernise the chain’s processes.
The bid to modernise has become even more important due to Covid, which sparked a gold rush in online food shopping as millions of locked-down customers turned to the internet. Tesco has created 16,000 jobs to handle delivery services, while rivals Marks & Spencer, Waitrose, Amazon and Iceland are all scrambling for a share of the market.
Ms Lorains said the drone plan is still in its early stages.
She said: “In the short time we’ve been together our team has already built networks in key locations and seen over 200 innovations.
"We’re moving quickly… There’s lots more to come and we welcome approaches from anyone with an idea to share.”
Mr Lewis will be replaced by Ken Murphy, a little known executive at pharmaceutical giant Walgreens Boots Alliance.
