UK grocers get competitive with Amazon

Sainsbury's is testing a one-hour delivery service as U.K. grocers get ready for a market battle with Amazon (NASDAQ:AMZN) as it expands Prime.

Britain's second-largest supermarket is testing a service called "Chop Chop" in an area of south London, according to The New York Times. The program is limited in several ways – shoppers within 3 kilometers of a single store in Wandsworth can order up to 20 items for one-hour delivery. The program works with an app on iOS devices and carries a 4.99-pound delivery fee.

In contrast, Amazon Prime Now lets Prime members throughout London order up to 15,000 items through the company's widely available app. One-hour delivery has a 6.99-pound surcharge, but two-hour and same-day services are available as part of the Prime program. Just last month, Amazon launched the AmazonFresh food delivery service in London.

The U.K. leads the United States in adoption and use of online grocery services, and Amazon's push into that market has intensified competition.

For more:
- see this New York Times story

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