It is the first step into the retail arena for the media veteran, who counts London Weekend Television and BBC One programme controller and Channel 4 chief executive among his former posts.
Ocado was founded by a group of ex-Goldman Sachs bankers four years ago and is 33%-owned by Waitrose parent company, the John Lewis Partnership.
It is not yet profitable, despite strong growth and a reputation for excellent service. Its appointment of its first chairman was seen in some quarters as part of preparations to float on the stock market.
Jason Nissing, Ocado finance director and co-founder, described Grade as an "inspiring, charming and accomplished businessman".
Grade is also chairman of Pinewood Studios and financial information provider Hemscott, although he is stepping down from the latter role.
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