Tesco PLC's (LSE:TSCO) new partnerships with Uber Eats and Deliveroo offer another route for the supermarket to expand its online business profitably, according to analysts at Citi.
The UK's largest grocer said yesterday that it will launch on Uber Eats from August and join Deliveroo later in the summer, giving customers access to groceries through two of the UK’s largest delivery platforms.
Citi said the most significant feature was the integration of Tesco’s Clubcard scheme. Customers will be able to access Clubcard prices and collect points through both apps, allowing Tesco to identify loyalty members and gain greater visibility over their spending on third-party platforms.
The agreements will broaden Tesco’s rapid-delivery reach beyond its existing Whoosh rapid grocery delivery service, which covers more than 70% of the UK population and has about 1.5 million customers.
Whoosh sales rose 51% in the 2026 financial year, highlighting the pace at which demand for rapid grocery delivery is growing.
Citi views the partnerships as an additional way for Tesco to "profitably expand its online ecosystem" without relying solely on its own infrastructure.
This 'ecosystem' includes Whoosh; its standard grocery home-shopping operation; F&F Online clothing; and Tesco Marketplace, its third-party online system.
