Argos launches same day delivery service

From this week, Argos goes head to head with Amazon Prime Now by offering a same day delivery service anywhere in the UK for £3.95 an item. Argos both undercuts Amazon (whose service costs £6.99 per item) and offers the delivery service right across the UK – where Amazon’s Prime Now only offers this in central London.

Argos has a network of shops right across the UK, and as such has the infrastructure in place already. Amazon is rapidly expanding its network but it would take many years to reach a similar saturation as Argos has built over decades.

Argos does not deliver everything on its website within the time promised – only those items labelled ‘Fast Track’, though there are 20,000 items listed in this category. The company has hired 3300 drivers to meet demand nationally.

Amazon now has serious competition for its Prime Now service which has only been dented with smaller companies such as Doddle working in central London. Argos is a significant force in both the retail and e-commerce sector in the UK. However, with supermarkets reporting their grocery delivery services as loss making over the last few years, it will be interesting to see how the offer works out in the short to medium term. If Argos can generate a profit then Amazon Prime Now could have significant competition.

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