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Amazon pits shopping basket against Ocado, readies United Kingdom fresh food delivery

The digital retailer will launch the service as soon as September in the capital and April next year in Leeds.

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The paper claimed that “plans for Amazon Fresh are at an advanced stage”, and cited a retail insider who said the grocery arm of the global retail giant is targeting two per cent of the UK’s grocery market. Fresh will therefore compete against established services in the United Kingdom (like Ocado, tesco, and Sainsbury’s).

Amazon’s grocery delivery service is still only available in a few markets in the USA, but the e-commerce company is already planning to launch the service outside of the country. Online grocery sales in the US are estimated to account for 1.9 percent of total grocery sales, according to a report published by industry research firm IBIS World in December 2014.

Furthermore, the Times reported Amazon’s decision to “remain thoughtful and methodological” in its motive to expand Amazon Fresh’s target market.

Amazon also plans to cut costs and optimise revenues by using third-party delivery vans, rather than shelling out for new refrigerated vehicles.

Amazon has not yet offered any official comment regarding the Amazon Fresh expansion plans for Britain.

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The company’s release of its Amazon Dash feature allows users to “say or scan” any product name to add to their virtual shopping cart and make future reminders for daily users.

London and Leeds are first UK cities to be offered Amazon Fresh grocery deliveries