Amazon and Morrisons extend partnership to launch same day delivery service

The online retail giant's tie-up with Morrisons began in June

Amazon, the giant of online retail, has been coy about its grocery ambitions in the UK (PA)

Selected Amazon Prime service customers will be able to order a full Morrisons shop via their smartphone from Wednesday, as the online retail giant and the British supermarket further expanded their partnership.

Earlier this year, Morrisons agreed a deal with Amazon that saw it offer “fresh and frozen” products through its food delivery service Amazon Pantry and its subscriber service, Amazon Prime Now. The service has since been rolled out to thousands of Morrisons products.

Amazon said the new service aptly named "Morrisons at Amazon" means Amazon Prime customers in selected postcodes in London and Hertfordshire can have their baskets delivered within an hour for £6.99, using the Prime Now app. Customers can also pick a two-hour delivery slot for free.

David Potts, the Morrisons chief executive, said: "As food maker and shopkeeper, we have unique skills to help build a broader new Morrisons through capital light growth.

“Morrisons at Amazon is another exciting joint opportunity and makes Morrisons good quality, great value-for-money products available to even more customers."

Neil Wilson, ETX Capital analyst, said the tie-up was a “game-changer” for Morrisons.

He said: "This is a big money-spinner for Morrisons and gives it a massive edge over Tesco and Sainsbury in the home delivery market. With prices being slashed and competition fierce, this is the kind of deal that will make a big difference to the bottom line."

Shares in Morrisons rose more than 1 per cent in early trading in London, valuing the company at almost £5.2bn.The stock has risen almost 50 per cent this year.

A strong Halloween, price cuts and a new premium range have helped Morrisons deliver its fourth consecutive quarter of like-for-like sales growth in November.

Mr Potts said: “There is a lot more we plan to do. We will keep investing in becoming more competitive and improving the shopping trip, and I am confident we will serve our customers even better during the important trading period ahead.”