Friday 28 October 2016

Amazon set to launch new fresh food delivery service 'within the month'

Rhiannon Williams

Published 05/05/2016 | 08:24

Jeff Bezos, chief executive officer of Amazon Photo: Bloomberg
Jeff Bezos, chief executive officer of Amazon Photo: Bloomberg

Amazon is reported to be launching its fresh food delivery service across the UK within the month as the online retail giant continues to challenge 'the big four' of supermarkets.

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Supplier Bol told The Grocer magazine that Amazon Fresh would begin selling its chilled meals from May 18 in the UK. Amazon is reported to have been trialing deliveries across the capital from its depot in east London.

Amazon Fresh has been delivering perishable goods across the US since 2007, and the company extended its Amazon Pantry service for longer-life groceries and household products last November.

An Amazon spokesperson said the company did not comment on rumour and speculation.

The new service comes in the wake of Amazon signing a deal with Morrisons,  allowing British shoppers to buy fresh food through its website for the first time.

Morrisons was slow to launch its online shopping platform, only partnering with Ocado to do so in 2013.

Tesco, Sainsbury’s, Asda and Morrisons continue to butt heads in an intense price war as cheaper rivals Aldi and Lidl continue to entice shoppers with their low prices. 

Sainsbury's has reported a fall in underlying pre-tax profits to £587m from £681m for the year to March 12, which it blamed on falling food prices. Like-for-like sales dipped by 0.9pc during the year.

Sainsbury's, which has 601 supermarkets and 773 convenience shops in the UK, said that while it expects consumers to shop more often in convenience stores and online, it still anticipates "the supermarket will remain the most popular destination for customers". 

Amazon Fresh is the latest in a series Amazon has made to expand into convenient household delivery, following the launch of its Dash Button ordering service in the US. A small electronic device, the Dash Button is designed to automatically re-order supplies of a specific product, like Tide washing powder or Huggies nappies, from the site when pressed for next day delivery.

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