Grocery chain Morrisons has launched a new service that is aimed at Amazon Prime customers called ‘Morrisons at Amazon’.

Amazon Prime customers who live in certain areas are able to order goods from the supermarket chain online via the Amazon Prime Now app. These orders will be picked at a Morrisons shop local to them and delivered the same day by Amazon within a one hour timeframe for £6.99 or in a two hour time slot for free. The Morrisons at Amazon service is set for launch in selected postcodes in London and Hertfordshire.

David Potts, chief executive of Morrisons, said: “As food maker and shopkeeper, we have unique skills to help build a broader new Morrisons through capital light growth. ‘Morrisons at Amazon’ is another exciting joint opportunity and makes Morrisons good quality, great value-for-money products available to even more customers.”

This new initiative broadens the supermarket chain’s wholesale supply services available to Amazon customers. The grocer started wholesale supply to Amazon in June and this has been extended to thousands of their products.

The grocery chain says these initiatives are capital light for the company and, although still in their early stages, will contribute to the £50m-£100m incremental profit opportunity it outlined at the 2015/16 Preliminary results.

Last year there were meetings between executives at Amazon, Ocado and Morrisons. Ocado now deliver Morrisons groceries through the Morrisons website, and is not an acquisition opportunity for Amazon as some surmised. Morrisons also handle Amazon Fresh and now this offering enables people to buy their goods direct either through the Amazon or Morrisons website. The menage a trois fully explained!

 
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