Amazon has introduced free grocery delivery in London with 2-hour-windows and same-day delivery. Who can compete?
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Amazon has made its grocery delivery service free for all Prime members in London and promises that the service will be available throughout the UK by the end of the year.
„Grocery delivery is one of the fastest-growing businesses at Amazon and we think this will be one of the most-loved Prime benefits in the UK. We will keep improving the grocery shopping experience so by the end of the year, millions of Prime members across the UK will have access to fast, free delivery of groceries” – said Russell Jones, Country Manager, Amazon Fresh UK.
Same-day delivery starting in the South East
Amazon Fresh is available in more than 40 postcodes including Bracknell, Guildford, Maidenhead, Runnymede, Surrey Heath, Windsor, Woking, Wokingham. Prime members in these areas can get their deliveries as fast as same-day for orders placed before 9pm, the company says. Orders over £40 are for free, if the order is under the limit, a delivery fee of £3.99 is charged. Prime membership in the UK costs £79.00 a year or £7.99 a month.
About Amazon Fresh
Amazon Fresh launched back in 2016, allowing customers to choose from a wide range of groceries and home items including electronics, fresh flowers, gifts, pet supplies and toys, as well as baby, health and beauty products.
All perishable products have a guaranteed minimum shelf life and, with Amazon’s Freshness Guarantee, customers can receive a refund if they are unhappy with the freshness of the products they receive.
Can British supermarkets compete with this offer?
Major supermarket chains, including Tesco, Sainsbury’s, Asda, M&S and Waitrose also offer online deliveries.
|Store||Min. Order||Delivery fee||Delivery windows|
|Amazon Pantry||£15||£3.99||Within one day on Prime|
|Asda||£40||£1 – £6.50||Two hours|
|Iceland||£25||£2 – £4 or free over £35||Two hours|
|Morrisons||£40||£1.50 – £5||One hour|
|Ocado||£40||£2.99 – £6.99 or free on Wednesdays when spending over £75||One hour|
|Sainsburys||£25||£1 – £7 or free delivery with spend over £100 on Monday-Thursday after 2pm||One hour|
|Tesco||£25||£1-£7 + £4 if your spend is below £40||One hour/ 4 hour (cheaper)|
During the coronavirus crisis, orders have boomed and supermarket profits have started to improve. However, as The Financial Times refers to Nick Carroll, associate director at market researcher Mintel, Amazon currently had just 3 per cent of the UK online grocery market, compared with Ocado’s 14 per cent and Tesco’s more than 30 per cent. The expert added that given Amazon’s popularity in the UK, it is more than likely that their share in the online grocery market will increase significantly.
Photo is illustration, credit: SounderBruce/ Flickr