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Kroger Unites With Nuro to Test Driverless Delivery Vehicle

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The Kroger Co. (KR - Free Report) collaborated with Nuro to launch a pilot program, wherein it will test the latter’s self-driving grocery delivery vehicle in Scottsdale, AZ.  Nuro is the maker of driverless road vehicles. With such advancement in technology, Kroger will now be able to offer home delivery services to its customers. The company is charging a fee of $5.95 for this option of home delivery with no minimum order facility.

The test will start at Fry Foods Stores in Arizona and customers within two miles can place their order via the Fry Foods app. The company will deliver the orders the same day or next day in Nuro’s autonomous vehicles. Further, the deal will help Kroger attract more customers who will benefit from safe delivery and affordable prices.

The company’s deal with Nuro to deliver groceries at customers’ door steps using autonomous vehicles is just another initiative to take the fight to its peers — Walmart (WMT - Free Report) and Amazon (AMZN - Free Report) . Customers via Kroger's ClickList ordering system and Nuro's app can place same-day delivery orders.

Other steps taken in this direction are Kroger’s deal with British online grocery delivery company Ocado and earlier acquisition of Home Chef, a meal-kit provider. Also, it introduced Kroger Ship — a U.S. online shopping service. We note that the launch of Kroger Ship on the lines of Amazon’s Prime Pantry and Target’s (TGT - Free Report) Restock service is crucial. This has clearly proved Kroger’s potential to stay abreast in the highly-competitive and evolving grocery space.

We note that the Zacks Rank #3 (Hold) company has gained 22.7% outperforming the industry’s growth of 18% in the past three months.



All said, Kroger is trying all means to stay afloat and attain incremental revenues. We believe that these strategies are likely to bolster the company’s top-line growth and drive the stock further.

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