Amazon just signed a deal with British supermarket Morrisons which is the fourth largest biggest supermarket chain in Britain. This deal brings competition to players already in the region, including Tesco and Ocado. With this deal Amazon now becomes serious about its food delivery service in the UK and can help them improve their strategy in the United States.
Amazon sure is expecting to attract more members for its Prime membership which includes Prime Now their 2 hour delivery service. “Prime Now overall has the potential to be more profitable than regular Prime,” said RSR Research analyst Paula Rosenblum. “I am quite convinced of that. The reason is that the assortment is narrower, and shipping is done in bags, not boxes, because it’s being driven from warehouse to home, not flown.”
The battle between online grocers in the UK has been heating up in the recent months and with Amazon’s entry in the battle things will sure become more competitive.