Amazon food cheaper than supermarkets
Amazon, which has taken on the supermarkets by offering food delivery, is cheaper than the big chains, research has shown.
Not only does the online retailer offer one-hour delivery in some areas, it matched or beat the prices of major chains in 33 out of 44 cases.
The research, carried out for trade magazine The Grocer, revealed that dairy products including butter, cheese and ice cream, were cheaper than at Asda, Tesco, Sainsbury's and Morrisons.
A 500g pack of Lurpak Spreadable butter costs just £1.80 from Amazon, compared with £3.25 at the big four. And a 180g pack of Philadelphia Original cheese is only £1, while it's £1.85 or more at the supermarkets.
Meanwhile, says the Grocer, Amazon is matching the price of the major chains on milk, pizza, fish and peas, amongst other products.
It charges £1.50 for a litre of Tropicana Orange Juice, the same as at Asda, and a pound less than at Tesco, Morrisons and Sainsbury's.
Overall, Amazon was the cheapest retailer, with the basket costing 15.5% more at Morrisons, 14% more at Sainsbury's, 8% more at Tesco and 6.2% more at Asda.
Meanwhile, Amazon is expanding its delivery service, starting a pilot scheme in Birmingham to deliver chilled and frozen food in double-quick time. Prime Now customers (who pay £79 annual membership) can choose from free two-hour delivery or paying £6.99 to get their groceries within the hour.
"Prime Now customers already benefit from ultra-fast delivery on everything from essentials like bottled water, coffee and nappies to must-have products like the latest video games and devices," the company says in a statement.
"We are excited to add a range of chilled and frozen items to this selection as we continue to expand the number and variety of products that can be ordered for delivery within 60 minutes."
The food service, which covers 50 products, is set to expand to London soon, and to the rest of the UK early next year.
In the US, Amazon offers a full grocery service called Amazon Fresh. Offering around 200,000 products, it offers free delivery for orders over $35 and is competitive on price.
And the company's believed to be considering introducing the full Amazon Fresh service here too. This summer, it took over a warehouse in Weybridge, Surrey, which was previously used by Tesco and includes chiller cabinets. Just inside the M25, it could be ideal for London deliveries.
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