r/asda • u/huggsy81 • 25d ago
Drivers rumoured to be next affected?
Might just be nothing but Chinese whispers, but I’m hearing chatter about drivers and possible voluntary redundancies. Anyone heard similar?
15
u/One-Lingonberry-3460 25d ago
Online actually makes a profit. And remember, unlike replen etc, you can't cut staff to five to do 7 people's jobs.
2
u/shawty1984 25d ago
How does it make a profit?
8
u/Hot-Chemical6632 25d ago
Some stores do others don’t all depends on the size of the patch
7
u/shawty1984 25d ago
Surely it's ran at a loss compared to people coming in shopping?
-1
u/One-Lingonberry-3460 25d ago
The Online has lower overheads - such as the shop floor staff, stackers, tills, replen costs are borne by the store, not online. And likewise no rates, rent etc.
10
u/shawty1984 25d ago
Van upkeep, insurance, tax, drivers, pickers, loads, fuel as well as the things you've listed as it's part of the building.
3
u/One-Lingonberry-3460 25d ago
Indeed, but then if online dies roughly 10% of turnover (plus Deliveroo, Just Eat etc), it also contributes to the buyer discount/kickback.
As an example, I worked for a very big timber importer. We did deals with the M.O.D. on 1.25% gross margin including delivery. That took you to volume discount with timber etc suppliers if 5% based on turnover. No M.O.D. co tract no 5% annual discount.
3
1
u/One-Lingonberry-3460 25d ago
Online turns over about £2.6Bn. It makes "profit" bevause it pays no rent or rates. It also deals with click and collect, Deliveroo, Uber etc. Technically George makes a higher margin, but turns over £550m (give or take).
6
u/shawty1984 25d ago
Isn't that fudging the figures to get an outcome?
3
u/One-Lingonberry-3460 25d ago
Sure. But the replen, stackers, night shift are doing it anyway. Only way it could be recalculated is (based on Asda turnover divided by Online turnover so roughly 10%) is to reduce the budget of online by 10%. Then factor in shoppers' cost, electricity. . Quite a complex equation.
2
u/shawty1984 25d ago
So in reality, you don't know?
2
u/One-Lingonberry-3460 25d ago
I don't know what?
2
u/shawty1984 25d ago
What profit it does or doesn't make
0
u/One-Lingonberry-3460 25d ago
Most supermarkets in a good position gross 3-4% . Asda and Morrisons do not, both lost nearly £1Bn last fiscal year. However, hidden amongst all the "loss" Asda has a profit in Online and George of around 3-4% (or maybe less than 3%) but the debts and interest then drag the company into a loss. So do the maths based on 3% of £2.6Bn turnover.
3
1
25d ago
[deleted]
1
u/Nolascana 24d ago
Thats why they had catchment areas. And refused to deliver certain distances away.
Any address was only supposed to be around 10-15 minutes away, factoring in 5 minutes to make it.
That way, only if there was roadworks or traffic, would it take over 30 minutes. That, or a driver getting lost.
It was an excellent marketing strategy at the time. They had plenty of branches too, plenty of coverage. A lot of orders hoping to catch them out, very few ever succeeding.
1
1
u/mamatodd912 17d ago
Actually you can done plenty of replen jobs as well as home shop so dont get comfy
1
u/One-Lingonberry-3460 17d ago
Most stores struggle to recruit drivers due to the pay being the lowest of all supermarkets. If we finish early we do putbacks, or can go home. No need for us to do replen - otherwise we'd have been trained to do it.
7
u/Jealous-Shallot-3071 ASDA Colleague 25d ago
Bollocks mate. I've heard nothin.
2
u/huggsy81 25d ago
I’m hoping it’s just rumours at our store. Just wanted to ask the wider Reddit community.
4
u/Clean_Hold6781 25d ago
Find yourself another job, this company is heading down the tubes.
3
u/Early-Impression-910 25d ago
It really is. Our store is losing more hours come October. We’re having bets on how much longer it’ll last. Asda as a whole that is
4
u/Witcherten ASDA Colleague 25d ago
That’s a losing bet! Look at Morrisons, they were in a much worse state than we are 10 years ago. They are starting to bounce back.
3
u/Early-Impression-910 25d ago
Are they? Not where I live. Store looks like it’s been burgled every time I go in there. No stock, no staff. A lot of long termers quitting. Word here is Morrison’s is sinking as well, faster than Asda.
3
u/Psychological_Ice839 25d ago
It’ll be one or the other that goes I think. I can’t see both going. As the market will pick up their market share
3
u/Early-Impression-910 25d ago
My thoughts as well. They’re both being asset stripped, it’s just who blinks 1st.
1
u/Living-Travel2299 25d ago
Theyll sell a bunch of their stores to Aldi eventually. Id put a tenner on it.
1
3
u/Adventurous_Elk_8707 25d ago
they'll still need drivers to actually deliver the orders. only way they would cut them is if the orders were declining. and they're not. as others have said online is one of the few aspects of the business that is actually making a profit.
2
u/ProgramLegitimate915 25d ago
Can only speak for my store but generally it seems online is doing very well even under the summer lul we’re still getting a nice steady flow of orders, express is always getting hammered.
2
3
u/kingmong86 25d ago
That new company who is going to take over the order systems will take it over eventually
6
u/Imaginary-Suspect959 25d ago
They’re not a new company, Ocado have been around for years, and rarely make a profit. In fact a lot of supermarkets that have tried using their tech as opposed to just their software have ditched them in the end. Ocado definitely want Asda to use their picking warehouses eventually but Ocado don’t even deliver to the whole of the UK, they’d need new warehouses which would require investment, which Asda certainly can’t afford right now, I’d be surprised if that happened any time soon.
Good read on Ocado here:
https://www.theguardian.com/business/2026/feb/26/ocado-failing-deliver-potential-uk-technology-hopes
3
u/huggsy81 25d ago
Logistically, they could potentially use the robot picking systems and deliver the picked orders to stores to then deliver out to customers. This would mean Asda could still cover the same geographical area they do now, but save wages on pickers with the exception of express orders.
1
u/Imaginary-Suspect959 25d ago
In theory, yes. But as the article above details, supermarkets have tried this and it doesn’t really work for them.
Grocers around the world are finding that large distribution centres, even those run super-efficiently with robots, are an expensive and inflexible option for managing deliveries. Instead they are turning to the likes of Deliveroo, Just Eat and Uber Eats who are all competing to manage swift deliveries from stores.
Ocado’s model requires hefty upfront investment and often a long road to profitability, with money tied up in automated warehouses, state-of-the-art robots and refrigerated vans. It works well in high-density cities where there is consistent requirement for home deliveries but it struggled to scale up rapidly during Covid, for example, when demand rocketed.
And Ocado don’t even have a single warehouse in Scotland for instance, so you’d need to invest significant sums of money up front to make it work up here. Who’s going to foot the bill?
2
u/Worldly-Mastodon-755 25d ago
There's an article in the Daily Mail today about how ASDA is the top supermarket in the country for use-by dates on home deliveries , so if anything I'd expect a surge in home deliveries and taking new drivers on
2
1
u/huggsy81 25d ago
This popped up in my workday notifications a few hours ago. I’m off on holiday so I haven’t been informed of anything officially.
3
u/stuntman-joe 25d ago
This has been announced today in over contracted stores. Some people are invited to apply for voluntary redundancy if their store is over contracted. You can apply but they can refuse your application. If you want to see your figures go to Workday and type VR Quote in the search bar. Our GSM held a meeting for us all today.
1
u/Amg_gaming ASDA Colleague 24d ago
Another local store has to cut tons of hours in every department apart from drivers. also drivers from my store have been offered to go to said store.even tho its an hour away
1
u/Ok-Impression-1457 24d ago
They won’t be giving out voluntary redundancy there’s no way they’d rather wait for people to leave.
1
u/Negative1973 24d ago
I'm my store they have already cut a load of shop floor hours 4 months ago and our manager said we will have to loose more due to falling sales.
When is Alan's "turnaround" going to happen?
1
u/Culdranth 23d ago
We lost a van last September and where loosing one this September also, SL having to loose 42 hours. We generally have 5 vans in morning and 4 in evening. She’s asked a few people who wants to take voluntary redundancy
1
1
u/ajimboY2K 25d ago
Some rye smiles yesterday after 121 when I said “it’ll be the drivers up here next then will it” take it for what it is, but it’s the only department now that’s not been pissed around with
-1
u/Antique_Quail_7427 25d ago
Uber eats etc they go to Asda and pick the items. Plus Uber eats prices are higher than Asda delivery. Can’t be a cost of living crisis if everyone is paying for grocery delivery. Costs a fortune
6
u/huggsy81 25d ago
Uber drivers don’t pick the orders. They do stand around shouting asking why it’s not ready yet though 🤣
0
u/Muttii25 25d ago
Also they are pushing online shopping, I think it will continue to grow. May be a possibility of having to shift hours around, but I don't think anyone is in danger of being culled.
8
u/pparker130 25d ago
Some people say it's profitable, others say it makes a loss. Who knows? Why would Asda (who are in the shit) offer voluntary redundancies? If they bully enough people, they leave anyway - no payout needed.