The London-listed food delivery service Deliveroo is deepening its ties with Asda as it seeks to drive revenue growth from its grocery operations.
Sky News understands that the pair are to open a rapid-delivery site in Tottenham Hale, north London, called Deliveroo HOP next month which will offer more than 1,300 Asda products in as little as 15 minutes.
Asda will own and manage the site, but use Deliveroo technology and its logistics network.
The move will come as the firms expand their core grocery partnership to 350 stores, a significant chunk of the privately owned supermarket chain's UK estate.
Deliveroo has expanded aggressively beyond its origins as a restaurant food delivery network, striking partnerships with retailers including the Co-op and J Sainsbury.
Carlo Mocci, Deliveroo's chief business officer for the UK and Ireland, said the HOP service was "our newest innovation that gives customers a speedier service and improved product availability".
Deliveroo went public on the London stock market in March 2021, but saw its shares crash in what was branded one of the City's worst-ever flotations.
The shares were priced at 390p, and on Friday were trading at around 110p, giving it a market value of £1.9bn.
For Asda, the alliance with Deliveroo is aimed at bolstering demand for its convenience operation, Asda Express.
Simon Gregg, Asda's senior vice-president of e-commerce, said: "The trial will provide us with valuable insight into how we can look to leverage our new convenience stores to bolster our last-mile delivery options for customers."