AMAZON EXPANDS PRIME NOW PARTNERSHIPS IN EUROPE
Amazon is expanding its Prime Now grocery delivery service to Frankfurt and the surrounding areas in partnership with Migros-owned supermarket chain, Tegut.
The offer includes more than 8,000 products from Tegut’s range including fresh, chilled and frozen items, organic, regional and sustainable foods, beverages, pharmacy and pet food. Prime members can place orders on the Prime Now app or via the Prime Now website and will receive delivery within a two-hour window. Delivery is free of charge for orders above €50, or for smaller orders above €20, there is a charge of €3.99.
Amazon and DIA extend partnership in Spain
Amazon is also expanding its Prime Now grocery delivery service in Spain to Zaragoza and surrounding areas, in partnership with DIA. The DIA-Amazon alliance began in September 2016, when the two companies reached an agreement that saw DIA launch an online store on Amazon. Orders from the store were fulfilled from a single La Plaza de DIA store in Madrid, with orders completed and delivered via Amazon’s Prime Now service.
Amazon now offers grocery delivery in eight cities across Spain: Madrid, Barcelona, Seville, Malaga, Valencia, Alicante, Bilbao and Zaragoza.
Prime members can choose from a range of 5,500 DIA-branded products in addition to products from major and local brands. The range includes fruit and vegetables, chilled, beauty and personal care, and pet products.
Delivery options include free same-day delivery on orders above €50, in two-hour slots. After customers place an order online in the DIA store on Amazon.com, the order is fulfilled from a local DIA store and distributed by Amazon. Servicing Prime Now from partner retailers allows Amazon to convert its Prime Now dark stores to service Amazon Fresh. This makes sense for Amazon because for smaller orders via Prime Now, the last mile will be shorter as the retailers’ stores are closer to shoppers’ homes.
Grocery expansion in Europe
Rachel Sibson, a Retail Analyst at Retail Analysis, said: “Amazon is increasingly using grocery to attract and retain members. Amazon wants its Prime members to start using the website for groceries. It will benefit from the incremental volume, and sales, and the high frequency of shop will drive traffic to its website.
“The expansion of its grocery delivery services in these markets is another step towards improving its grocery proposition in Europe. In the UK, Spain and Italy, Amazon closed its Pantry service to offer a clearer, simpler proposition to convert Prime members. This also benefits its Amazon Fresh grocery delivery service, which the retailer is also using to enhance its offering to customers.”
In the UK, Amazon expanded its Amazon Fresh grocery delivery outside of London and the south of England for the first time in September 2020.
It also removed delivery charges for Prime members using Amazon Fresh. In August, Amazon and supermarket chain Morrisons announced that customers could shop the full Morrisons range on Amazon.co.uk.
Sibson said: “Amazon has recently launched its Fresh service in Italy, initially available in Milan. In February 2021, the retailer also launched Amazon Fresh in Spain. The service launched in Madrid with plans to roll it out to Barcelona in the coming months, and eventually other cities in Spain.”