Amazon UK steps up competition in online grocery sales

Platform Industry: Amazon branding on screen

Amazon will begin free and same-day deliveries of markets in London for its ‘Prime’ members from Tuesday, as it looks to cash in a trend that’s been boosted by the coronavirus lockdown, on fast-growing demand for purchasing essentials on the internet.

KEY POINTS:

  • Amazon has started same day, free deliveries in London for its Prime members
  • Service due to launch across the remainder of the UK before the end of the year

Customers with a ‘Prime’ subscription may order meat, produce, snacks and other family staples from Amazon UK’s ‘Fresh’ service at two-hour windows for orders over GBP 40  (approximately $52), the e-commerce giant said.

Amazon said the service, which it aims to implement across the UK at the end of the calendar year, applies to approximately 300 postcodes. The minimum order value for Prime clients has also been lowered to GBP 15 from GBP 40.

Orders made prior to 9 pm will be delivered the same day in most areas, it said.

“But the company has deep pockets, huge ambitions and an uncanny habit of emerging as a leader in its targeted fields.”

Related Article:
BofA: Big tech-led equity inflows fuelling 'mother-of-all asset bubbles'

Amazon continues to be tapping into this industry when it launched its ‘Fresh’ service, although it was selling food and drinks because the launch of its grocery store in 2010.

The lockdown has contributed to changing consumer behaviour in five British families now buying over the world wide web, market researcher Kantar said .

Kantar stated that though supermarket earnings have been rising, the pace of growth has slowed compared to weeks since lockdown constraints eased.

Internet supermarket team Ocado forecast earlier this month that online grocery shopping will double its share of the UK market within the new couple of years, building .

It is unclear how Amazon’s new plan will influence its cooperation with Morrisons, which enabled customers to purchase from the supermarket and get it delivered by Amazon.

 

Share this article