Amazon has launched its fresh grocery delivery service in Berlin and neighboring Potsdam for members of its Prime subscription service, which could boost the country’s sluggish online food sales.
According to Reuters, Prime members can choose from 85,000 products, including chocolate, coffee and bread, from 25 local stores. The service costs €9.99 ($10.87) a month for unlimited deliveries with a minimum order value of €40.
Amazon launched fresh food delivery services in Seattle in 2007 and has expanded to a handful of other U.S. cities. Last year, it started the service in London — this move into Germany, its second biggest market outside the United States, has been long anticipated. Deutsche Post DHL announced last week it had won a contract to deliver groceries for Amazon.
While grocery eCommerce has not taken off in Germany, REWE, the country’s second-biggest supermarket chain, has been investing heavily in eCommerce in anticipation of Amazon’s move into food. Yet management consulting firm A.T. Kearney expects eCommerce will account for 3 percent of Germany’s grocery market by 2020, up from just 1 percent now.
Florian Baumgartner, director of AmazonFresh Germany, said the service would start in parts of Berlin and Potsdam and gradually expand to more areas based on the company’s experience and feedback from customers.
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