9th Jun 2016 05:51
LONDON (Alliance News) - US e-commerce giant Amazon.com Inc has launched its AmazonFresh food delivery service in the UK, potentially posing a significant challenge to other grocers and particularly FTSE 250-listed delivery specialist Ocado Group PLC.
AmazonFresh will initially offer a full grocery service only in parts of central and east London, operating from a distribution centre in the east of the capital. It said it will be using small and medium-sized logistics firms to handle the deliveries.
"We are launching with a comprehensive offer in a limited area and will take our time to hone and improve our service," said Ajay Kavan, the vice-president of AmazonFresh.
The deal is likely to cause concern for Ocado, the online grocery delivery service. In February, shares in Ocado sank after Amazon agreed a deal with Wm Morrison Supermarkets PLC, the blue-chip grocer, to offer Morrisons products via the Amazon Prime and Amazon Pantry services.
Ocado has a technology platform deal in place with Morrisons, so the Morrisons tie-up with Amazon caused jitters for Ocado shareholders.
By Sam Unsted; [email protected]; @SamUAtAlliance
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