London and Leeds are first UK cities to be offered Amazon Fresh grocery deliveries

Digital retailer Amazon is set to spread its interests further with the launch of an online grocery delivery service in the UK, possibly commencing as soon as September in the capital and April next year in Leeds.

Amazon Fresh is positioning itself as a direct competitor to Britain’s ailing supermarkets by going head to head with established businesses such as Ocado and the delivery arms of Tesco and Sainsbury’s.

To differentiate it from its rivals the internet retailer is believed to be readying to give Amazon Prime subscribers an Amazon Dash, a wireless device for placing grocery orders which is already in use in America.

In a bid to keep costs down Amazon will deliver using third-party vans and cool boxes rather than invest in a fleet of refrigerated vehicles and might limit its offering to around 1,200 fresh items.

The UK grocery market is valued at around £149bn with Amazon Fresh reported to be aggressively targeting a two per cent market share, three times Ocado’s current share of £1bn in sales.

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John Glenday is responsible for compiling The Drum's daily morning bulletin and ensuring that overnight breaking news is covered while you're still brushing your teeth. Can also make a mean cup of tea.

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