Amazon Fresh has launched in 69 postcodes across central and east London, with one hour slots being offered for same day deliveries. The service allows customers to order groceries from a massive range of locally sourced products from around London. Amazon Fresh is available to existing Amazon Prime members. Deliveries will be made in paper bags protected by chill boxes, which are used by the network of independent operators that already deliver non-food items for Amazon.
The arrival of Amazon Fresh, which has been operating in the US for about seven years, comes after the online business signed a deal with British supermarket Morrison’s. The Bradford-based chain has agreed to wholesale ambient, fresh and frozen products to Amazon despite already operating its own website in partnership with Ocado.
Ajay Kavan, vice-president of Amazon Fresh, said the key to the success of the service would be a combination of low prices, vast selection and fast delivery. It will be offering one-hour delivery slots to 69 postcodes in the capital with same-day delivery offered on orders placed before 1pm. Prices on selected items are intended to be slightly cheaper than at the major grocers.
Kavan said: “The bar in grocery retailing is exceptionally high. The supermarkets and grocers are among the very best retailers in the world. We will be very methodical and considered in how we roll this service out further in the UK.”
Major brand names such as Coca-Cola, Kellogg’s, Warburtons, Walkers and Yeo Valley will be included as well as products from about 50 small local shops, including butchers C Lidgate, Gail’s Artisan Bakery and Konditor & Cook.
UK supermarkets are already under pressure from the rise of the internet and increasing competition from discounters such as Aldi and Lidl. Amazon’s widely expected expansion into fresh food will ratchet up concerns about the major chains’ future. Sainsbury’s, for one, is in the process of buying Argos as it attempts to fight back against the potential threat. It goes to show how Amazon plans to disrupt the ‘Big Four’ with its focus on price which you could say was inspired by the success of Aldi and Lidl.