Amazon to introduce an ultra-fast delivery service for grocery items in the UK

Amazon to introduce an ultra-fast delivery service for grocery items in the UK
Written by:
Wajeeh Khan
17th April, 16:18
Updated: 28th April, 13:58
  • Amazon to launch a new ultra-fast delivery service for grocery items in the UK.
  • The online retailer aims at challenging Ocado's market dominance in the United Kingdom.
  • The new service will be offered as a free benefit to members of Amazon Prime in the country.

The Coronavirus pandemic has restricted people to their homes and strict social distancing measures are making it harder for the public to have access to essential items. Amidst the chaos, Amazon is taking the next step towards making things easier for the people in the United Kingdom.

In an announcement on Friday, Amazon (NASDAQ: AMZN) said that it plans on introducing a novel, super-fast delivery service for grocery items in the UK.

According to Amazon, the service that it is calling Ultra Fast Fresh will retrofit 9 of the retailer’s existing depots in the UK to manage fresh produce and deliver grocery orders in a matter of hours.

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Amazon is expected to turn its grocery delivery service, Amazon Fresh, into an Amazon Prime’s free benefit in the United Kingdom removing the additional per-order charge associated with Amazon Fresh or an add-on fee that is charged monthly.

An Amazon spokesperson wasn’t available to comment further on the news.

Amazon’s Move Is Aimed At Challenging Ocado’s Market Dominance

Owing to a massive increase in online orders for grocery items in the UK amidst the health emergency, the country’s leading online grocer, Ocado, is finding it difficult to have sufficient slots for grocery deliveries to meet the demand. Amazon’s move, therefore, is also targeted at expanding its presence in the UK’s online grocery market.

The new service is targeted at bringing efficient delivery of grocery items to roughly 40% of households in the UK by the end of 2020. Amazon is expected to use its refitted depots in the UK to pick and pack products from various suppliers.

Ultra-Fast Fresh is a component of Amazon’s Fresh service. In the U.S, Amazon Prime members can currently avail the ultrafast grocery delivery service as a free benefit. The online retailer removed the £11.99 monthly fee attributed to Amazon Fresh last year in October.

UK’s Antitrust Regulator Approves Amazon’s Stake In Deliveroo

In separate news, the UK’s Competition and Markets Authority (CMA) also cleared Amazon’s stake in Deliveroo on Friday after the online food delivery company informed the antitrust regulator that it is bound to fail financially due to the Coronavirus driven hit to its business without Amazon’s investment.

At the time of writing, Amazon is roughly 25% up year to date in the stock market. The £940 billion ($1.18 trillion) company hit a record high on Thursday at £1,961 per share.

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