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Amazon extends same-day grocery service to Madrid

Amazon Prime customers in Madrid will now be able to its fast delivery Fresh service, as the ecommerce giant plans to extend it across Spain.

The Amazon Fresh service offers over 10,000 items with same-day delivery in two-hour intervals. Delivery is free on orders over €50.

Spanish supermarket chain DIA also sells through Amazon.

The company plans to expand the service across Spain throughout 2021.

Camille Bur, country manager for Amazon Fresh in Spain, France and Italy, said: “We are excited to expand our express delivery service for grocery, beauty and personal care products, as well as other categories with the launch of Amazon Fresh.

“We are always looking for ways to improve the online shopping experience, and we believe that Amazon Prime customers in Madrid will be delighted to be able to make their purchase on Amazon Fresh or in the DIA store at Amazon.com,” he adds

Profitability in online groceries has often been elusive; Foley Retail Consulting estimates that distribution costs for online pure players are four times as much as those of physical grocers and profits are considerably lower.

Amazon’s advantage is its logistics arm, which uses automation to benefit from economies of scale.

Whether this success can easily be extended to groceries remains to be seen; groceries have different requirements for storage and limited shelf lives. To gain the same advantage Amazon will need to achieve high enough volumes to absorb the extra costs inherent in grocery items.

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