Rollover Ocado! Amazon fuels rumours of London food delivery service
Massive warehouse leased by Amazon within London's M25 belt being prepped for food delivery?
Amazon has fuelled rumours that it plans to take its online supermarket food delivery service to London after leasing a warehouse within the London M25 area. The move would be the start of a rollout that would see the internet retailer take on Ocado and the other major supermarket chains in the UK.
The warehouse it is leasing in the Brooklands Business Park in Weybridge, Surrey, was previously used by supermarket chain Tesco as a distribution centre. Amazon has already rolled out Amazon Fresh, its grocery service in Seattle, California and New York.
Amazon has already outlined its plans to major food manufacturers in the UK in a series of presentations. While Amazon already sells a range of non-fungible goods, both within its own operation as well as by third-parties using its website, the initiative will add more everyday food items, including fruit and vegetables, bread and meat.
Amazon has admitted that it was planning to open a "delivery station" in Weybridge, but declined to comment further on speculation surrounding plans for an online supermarket launch. It told The Guardian that it would be employing 20 people at the 27,870 square meter warehouse. The distribution centre was closed by Tesco in 2013.
According to The Guardian, the warehouse is being refitted by a company called Clegg Food Projects, which specialises in "providing practical solutions for major food and drink operations" - another indicator of Amazon's plans, perhaps - and will include chiller cabinets.
The site will be Amazon's 15th delivery centre in the UK, alongside eight fulfilment centres across the country.
The rumoured launch comes as the supermarket sector struggles against falling prices and profitability, wrought largely by the rising popularity of low-priced supermarkets Aldi and Lidl.
Online-only Ocado, meanwhile, despite high levels of investment in automation, has struggled to turn a profit, although it now runs the online operation of high street supermarket Morrisons.