While several U.S. cities have yet to reap the benefits of AmazonFresh, several reports are indicating the grocery delivery service will begin expanding overseas to the U.K. as early as September of this year.
The Times of London reports that plans for AmazonFresh are in an “advanced stage.”
ParcelHero’s David Jinks MILT said in a press release, “The secret behind the swift introduction of AmazonFresh into London is the success of the company’s new delivery service, Amazon Logistics. Having its own distribution network enables Amazon to bypass traditional U.K. suppliers such as the Royal Mall, and ensure its Prime members get a wide choice of delivery options, including same-day deliveries in areas of the Capital.”
Jinks said that the AmazonFresh service delivers a selection of fresh, frozen and prepared foods to customers, either the same day the order is placed or the day after. One difference between AmazonFresh and already established U.K. services such as Ocado is that Amazon typically teams-up with local businesses such as delis and bakeries to widen the range of local produce available, and can also deliver other Amazon orders.
“Amazon has been developing its own logistics network for some time and now has the capacity to deliver change in this sector of ecommerce,” said Jinks. “It has already rolled out AmazonFresh in its hometown of Seattle and in areas of California and New York, but it makes sense launching into urban areas of the U.K. even before extending the service in the U.S.
Jinks added, “The thinking behind Fresh is partly to push membership of Amazon’s lucrative Prime service, which locks people into the company. “In the U.S. Amazon Prime members have had special discounts on membership of the Fresh delivery service. The pricing structure for the U.K. has yet to be announced, but ParcelHero believes there will definitely be benefits for Prime members.”
Re/code reports that upon entering the U.K., it will encounter a competitive grocery delivery market that is more mature than the U.S. Retail research firm IGD estimates that in the U.K. online gales make up 5% of grocery sales and ordering online pick-up in store is popular. In the U.S., online grocery sales account for less than 1% of the market.
An Amazon spokesperson told Business Insider “we do not comment on rumor or speculation,” and told The Times of London that “we will remain thoughtful and methodical in our approach to expanding Amazon Fresh.”
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Currently, AmazonFresh delivers to Seattle, Southern California, Northern California and New York, according to the AmazonFresh website.