Amazon plans major online grocery expansion

Is there anything Amazon doesn’t want to do? Last week in the UK Amazon snapped up LoveFilm and this week Amazon plans major expansion into online fresh food and groceries.

The FT is reporting that in the US the online retailer is developing a free weekly home-delivery service for everything from alcohol to fresh fruit and veg.

The launch is to rival US start-up services such as FreshDirect.com and MyWebGrocer and builds on a test service it launched last year.

The FT says Amazon tested the AmazonFresh service in Seattle last summer with the offer of free delivery. The free delivery is in stark contrast to what some charge particularly in the UK where it can cost as much as £6.50 to have online shopping delivered by the likes of Sainsbury’s and Tesco.

The expansion in the US probably gives an indication of what we can expect in the UK market. Last year Amazon launched an online grocery beta service, which also offers free delivery.

Amazon hopes free delivery will quickly win it US market share. The FT says Amazon will use the small truck fleet that operates its pilot (called AmazonFresh).

The expansion to food almost completes Amazon’s almost universal online offering and builds its challenge to US retail giant Walmart.