Amazon Takes On Supermarkets With Launch Of AmazonFresh

Following months of speculation, Amazon has announced the launch of its ‘AmazonFresh’ service in the UK.

The service will initially be available to members of its Prime scheme in 69 postcodes across central and east London. They will be able to benefit from same-day delivery on an extensive range of 130,000 fresh, frozen and ambient grocery items, made up of own label lines from Morrisons and a host of branded products at competitive prices. Amazon will also offer specialty food from 50 local suppliers.

Deliveries will be made from a warehouse in Bow, east London, through Amazon’s existing logistics operation.

Amazon has been ramping up its grocery offer in recent months, growing its Prime Now and Amazon Pantry services with customers around the UK. However, widening its product choice will see it competing head on with the supermarket multiples and Ocado.

“We are launching with a comprehensive offer in a limited area and will take our time to hone and improve our service,” said Ajay Kavan, vice president of AmazonFresh.

He added: “The bar in grocery retailing is exceptionally high. The supermarkets and grocers are amongst the very best retailers in the world. We believe that the key to the long term success of AmazonFresh is to bring together the low prices, vast selection, fast delivery options and customer experience that Amazon customers know and love.”

Amazon Prime members can sign up for a 30-day trial of AmazonFresh and will then pay £6.99 per month for the service, with unlimited deliveries for orders of over £40.

AmazonFresh has been available in a number of cities in the US since 2007.

NAM Implications:
  • Amazon have moved from playing with food to offering 130,000 fresh, frozen and ambient grocery items…
  • (remember when Tesco culled 30% from 90,000?)
  • A serious competitor to the mults…
  • Same day delivery of the above makes them a serious rival to Ocado
  • Time for a reset of your UK trade strategies?