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Sunday 18 August 2019

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Morrisons and Amazon widen same-day delivery

Written by Peter Walker
13/06/19

Morrisons and Amazon will expand their same-day online grocery delivery service to more than double the number of cities, with its own page on Amazon Prime.

The service currently offers Prime members in parts of London, Birmingham, Leeds and Manchester delivery within just one hour of purchase, from Morrisons’ full range of items.

Now Prime subscribers in Glasgow, Liverpool, Newcastle, Sheffield and Portsmouth will get access, with plans to expand ‘Morrisons at Amazon’ across more cities in future years.

Morrisons will get its own retail site on Amazon’s Prime Now website and app, selling directly to consumers, although will continue to supply Amazon as a wholesaler.

Amazon UK country manager Doug Gurr said: “We have greatly valued our relationship with Morrisons since the launch of the Morrisons store on Prime Now in the UK in 2016 and expanding this relationship enables us to offer Morrisons high quality grocery selection to even more Prime members.”

Morrison’s chief executive David Potts added: “Continuing to partner with the best digital operators such as Amazon is a significant, capital light growth opportunity for Morrisons.”

Commenting on the deal, GlobalData retail analyst Thomas Brereton said that leveraging Amazon’s reputation and last-mile logistical capabilities will help the supermarket create a point of differentiation to its Big Four rivals.

“With the value of the online food market set to increase by 48.9 per cent over the next five years - significantly higher than the 15.5 per cent for the overall grocery market, according to GlobalData - it is understandable why Morrisons are looking to bolster growth figures through online expansion.

“However, it joins the end of a list of similar announcements from food retailers looking to capitalise on the fast-growing sector, with M&S launching a £750 million joint venture with pureplay Ocado and Waitrose signing a deal with the mysterious TDP to forge a £1 billion online business in three years’ time.”



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