Amazon strikes a deal the UK's fourth-largest grocery chain, Morrisons, to deliver fresh and frozen foods in as quickly as under one hour. Bobbi Rebel reports.
Amazon setting out to become the UK's bread and butter for online food shopping. The internet store teamed up with the Great Britain's fourth-largest grocery chain, Morrisons, to deliver fresh and frozen goods, in some places as quickly as under one hour. Justin Urquhart-Stewart of Seven Investment Management says, Amazon is entering a market that is already under a lot of pressure. SOUNDBITE (English) JUSTIN URQUHART-STEWART MARKETING DIRECTOR SEVEN INVESTMENT MANAGEMENT, SAYING: "Amazon can come in and 'what's their primary strength'? The answer is delivery." But it's up against established online rivals, like Tesco and Ocado, and heavy discounters, Aldi and Lidl. The deal with Morrisons is Amazon's biggest foray into food delivery business outside of the United States. Analysts say, it could target every part of the retail sector, from big weekly shopping trips to buying bread, milk and vegetables. The UK online grocery market is predicted to double to nearly $24 billion in the next five years, according to industry research group IGD.