Morrisons has extended its relationship with Amazon, enabling customers to order their weekly grocery shop for delivery within an hour in London and Hertfordshire.
The announcement of the new service for Amazon’s Prime Now members sent shares in Ocado, the online grocery specialist which supports Morrisons’ website, down by 8.5% at the end of the day.
Under the Prime Now service, which will be called Morrisons at Amazon, orders will be picked at a local Morrisons store by the supermarket’s staff then collected and delivered by Amazon either within one hour for £6.99 or in a two-hour slot for free in selected areas of London and Hertfordshire.
Mariangela Marseglia, the director of Prime Now EU, said the deal would add 10,000 items to its ultra-fast delivery service.
David Potts, the chief executive of Morrisons, said: “As foodmaker 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.”
He said the Amazon deal would contribute towards Morrisons’ target of generating £50m to £100m in additional profits from online, wholesaling, manufacturing and services.
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