Amazon UK has expanded its Prime Now one-hour delivery service to Birmingham after launching it in London over a month ago, with the aim to add other British cities later this year.
Now available in Birmingham and selected postcodes in surrounding areas including Lichfield, Cannock and Tamworth, the ultra-fast service offers members of the Prime scheme one-hour delivery on over 20,000 items through a mobile app. Prime Now is available for a variety of items on the Amazon website including daily essentials such as coffee, batteries and nappies, as well as other popular items like games consoles, toys and sports equipment.
Prime Now customers can choose delivery within one hour of ordering for £6.99, or free delivery within a choice of two-hour, same-day delivery slots between 8am and midnight, seven days a week.
Amazon UK said the service is powered by its growing network of fulfilment centres that utilise high-end technology to speed up order delivery times for customers, and get orders delivered to customers’ doors in an hour or less. The company currently has eight regional fulfilment centres and 13 local delivery stations across the UK.
Prime Now is made available through Amazon Logistics, Amazon’s technology and logistics platform that empowers independent local, regional and national delivery companies across the UK to deliver Amazon parcels to customers seven days a week. Deliveries will be made from an Amazon building in the Erdington area of Birmingham.
“Customers in London already benefit from ultra-fast delivery with Prime Now and we are delighted to bring this innovative service to Birmingham and selected postcodes in surrounding areas only five weeks after our London launch,” Christopher North, Managing Director of Amazon UK, said. “Since launching Prime Now, we’ve seen high demand on everything from essentials like bottled water, coffee and nappies to must-have products like the latest video games and devices – all available for delivery in less than 60 minutes. We are excited to continue delivering to customers in record-breaking time.”
Amazon explained that all Prime members can immediately download the Prime Now app on iOS and Android devices to find eligible delivery postcodes and request notification when the service is available in their area. There are ‘millions’ of Amazon Prime members in the UK and ‘tens of millions’ worldwide, according to the company. On a base of tens of millions, worldwide paid membership to Prime grew 53% last year.
In the USA, Prime Now is currently available in Atlanta, Austin, Baltimore, Brooklyn, Dallas, Manhattan and Miami, and is gradually introducing deliveries from local stores in addition to orders directly from Amazon.
According to media reports, Amazon UK launched delivery lockers at Jet petrol stations last month enabling customers to pick up their purchased items from their local gas stations. Amazon reportedly partnered with the fuel retailer as part of its strategy to reduce delivery costs. Jet has a network of over 350 filling stations across the UK.
The roll-out of the Amazon delivery lockers at the Jet petrol stations is due to be implemented in a gradual manner, with the first pick-up points being located at Jet stations in Doncaster, Cleveland, Tyne and Wear, Middlesex and Glasgow, according to a report by The Times.
For Jet operators, the new deal means a higher footfall due to clients picking up their deliveries, with potential for increased fuel and convenience sales, as well as a monthly fee paid to them by Amazon dealers.
Amazon already has a network of 300 delivery points across the country in convenience stores, shopping centers, airports and train stations.
According to diverse other news reports, Amazon will be launching its grocery delivery service, Amazon Fresh, in the UK this year. The Times first reported the news saying that the plans are "at an advanced stage," with a London launch scheduled for September.
Amazon Fresh is currently only available in a few US locations, including New York, Seattle, San Francisco, and Los Angeles. Amazon's entry into the UK market would put it in direct competition with British supermarkets including Tesco and Sainsbury's, as well as online grocer Ocado.
With the UK grocery delivery market being significantly more developed than in the USA, it makes sense for Amazon to target first international expansion of Amazon Fresh. According to a retail research firm IGD, online deliveries make up less than 1% of the whole US grocery market but a whole 5% of the UK market.
An Amazon spokesperson told Business Insider that "we do not comment on rumour or speculation." The company also told The Times that it does "not comment on speculation and rumour but what I can tell you is that we will remain thoughtful and methodical in our approach to expanding Amazon Fresh."
