Amazon Aims To Expands Morrisons Deal To Enter Grocery Delivery Market
Amazon, an American multination e-commerce giant, is taking steps to expand its relationship with Morrisons by moving into Britain’s grocery market.
This move will enable the members of Amazon Prime to have access to the full range of supermarket group on the internet giant’s website.
Both Amazon and Morrisons have had an acquisition since 2016. In the past few years, both have steadily expanded their links. There expanding friendship has led to speculation that the duo could even emerge as a possible bidder for Britain’s No. 4 supermarket chain.
During the coronavirus pandemic, the market has seen a sudden rise in demand for online groceries. On Tuesday, Nielsen, market research firm, said that online grocery participation had grown to 14% of the UK grocery market in the 12 weeks to Aug. 8.
On Wednesday, both Amazon and Morrisons said that the members of Amazon Prime will be able to receive same-day delivery on order as part of their subscription.
For orders that are more than 40 pounds as there will be no extra cost directly on the Amazon.co.uk website. But for orders worth less than 40 pounds there will be a 3.99-pound delivery charge.
In the coming weeks, the companies said that Morrisons on Amazon will launch in Leeds, northern England. It will focus on expanding to millions of Prime members across the U.K. The store will offer thousands of grocery products including meat and seafood, dairy and baked goods, fruit, and vegetables. Prices on the product will be the same as Morrisons’ stores.
Morrisons staff will pick and deliver the orders to Amazon’s customers from the nearest local Morrisons stores. Last month, the deal with Morrisons builds on Amazon’s move to begin the free delivery of its grocery service.
Of the total grocery delivery market, Morrisons hold as much as 10.2% market share, followed by other market leaders including Tesco, Sainsbury’s, and Walmart’s Asda in annual sales.