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Kroger to launch grocery delivery service in Austin

The service will add up to 161 job opportunities for the Austin area.

AUSTIN, Texas — On Friday, Opportunity Austin, the Greater Austin Chamber's five-county prosperity initiative, announced that Kroger will soon be launching an e-commerce grocery delivery service in Austin.

The Kroger Company will be adding a "last-mile spoke facility" in Austin, which will be powered by a high-tech customer fulfillment center in Dallas.

“We welcome the opportunity that Kroger’s innovative and modern grocery delivery service will bring to residents of the Austin region,” Charisse Bodisch, Austin Chamber senior vice president, economic development, said. “Austin continues to be a hub for innovation and Kroger’s use of advanced robotics, automation, and AI enabling the retailer to launch this new service locally and is making inroads for the future of grocery delivery.”

The expansion is part of a partnership between Kroger and Ocado, a technology company for grocery e-commerce. 

To use the service, customers will be able to place an order on Kroger.com or the Kroger app for fresh food and other essentials. Bots will then retrieve those items from "The Hive" hub, eventually finding their way to refrigerated vans for delivery.

“Kroger today looks very different than it did in 1883 when we opened our first store,” Rodney McMullen, Kroger chairman and CEO, said. “But the core principles that made that store successful – service, selection, value, and our commitment to our customers – remain the bedrock of our business. I’m incredibly excited for the future of Kroger, and both thriving physical stores and digital solutions are part of it.”

The 70,000-square-foot facility in Austin is expected to become operational later this year, creating up to 161 job opportunities. 

Opportunity Austin has partnered with Kroger's Economic Development team to provide suppose and resources for the company's location evaluation.


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