UK: latest delivery developments

Date : 13 June 2019

Morrisons is rolling out its home delivery deal with online retailer Amazon to more cities, while Waitrose extends its Rapid Delivery trial to more London postcodes.

Expansion of home delivery deal with Amazon

Following the announcement of their supply agreement in 2016, Morrisons is extending its home delivery deal with Amazon. The expansion will see new cities benefit from the delivery deal throughout 2019 including Glasgow, Newcastle, Liverpool, Sheffield and Portsmouth. The deal offers customers same-day delivery on Morrisons products for Amazon Prime Now and Amazon Pantry customers.

Morrisons will also begin to sell directly to customers as it becomes a featured retailer on Amazon’s Prime website and app, through Morrisons at Amazon.

David Potts, chief executive and Morrisons, commented: "Morrisons' conveniently located local supermarkets and Amazon's very popular website and customer offer are an ideal combination, offering ultra-fast same-day grocery home delivery for customers in and around cities across Britain. Amazon has been a valued partner of Morrisons for over three years and we are pleased to be expanding our relationship together”.

Waitrose extends Rapid Delivery trial

Waitrose & Partners has announced it is set to roll out its Waitrose Rapid Delivery service to more London postcodes, as well as areas outside the capital.

Through its partnership with delivery start up ‘On the Dot’, shoppers can purchase up to 25 items from over 2,000 products and have them delivered within two hours, or on the same day. Delivery is priced at £5.

The move follows the success of its London-based trial, which launched in September 2018.

The expansion will see a further 58 London postcodes benefit from the service including areas such as Battersea, Bayswater and Victoria. Outside London, customers in Bath and Hove will have access to the offer from the 8th and 15th July, respectively.

Nicola Waller, Head of Business Development at Waitrose & Partners, commented on the news: “There is a growing number of customers who want to get their shopping as and when they want it which gives us a great opportunity to continue testing the appetite for the service in new locations both inside and outside of London”.

The move aligns with Waitrose’s continued efforts to deliver more convenient solutions, last month the retailer also expanded its in-home unattended delivery service.

Rapid delivery competition

As shopper demand and expectations continue to rise, increasingly we are seeing online retailers invest in improving their delivery standards, not only offering same day delivery, but also more immediate solutions for shoppers. Morrisons extending its deal with Amazon and Waitrose extending its Rapid Delivery service are not the only examples of retailers tapping into the trend of creating more convenient solutions for customers.

In March 2019, Ocado also launched its one-hour delivery service in London, Ocado Zoom while Co-op soon after launched its first online home delivery service offering customers delivery via a dedicated online store in as little as two hours. Most recently, Amazon re-entered the growing meals delivery market through its investment in food courier service Deliveroo.

Retail Analysis subscribers can see how shoppers are using online rapid delivery and how manufacturers from across the world, can meet the opportunity in our Online rapid delivery opportunity report here.           

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