Ocado boss Tim Steiner has vowed to take on the supermarkets on price in the coming months.

He said the online specialist would regain the initiative by guaranteeing shoppers their basket would be cheaper at Ocado than with the major multiples. Steiner dubbed the move the ‘lower price promise’.

“We have brought our pricing down over the year, but the market will not reach tipping point until the online market is cheaper than the supermarkets”, he told the Sunday Telegraph.

“It is just not something that is going to go there overnight. It is a journey. Two weeks ago, we launched a pilot in Manchester called the lower price promise, where we are doing a basket match and we guarantee it will be cheaper.”

He signalled further price cuts next year as the company gained further efficiencies from its new distribution centre.

“Over the next two to three years, we would expect the opportunity to invest more money in the price proposition to take it below the price of the supermarkets,” he said, adding that Ocado would deliver a profit this year.

His comments come after the City last week gave a downbeat assessment of Ocado’s prospects, with one analyst arguing that the company was “at the beginning of the end game”.