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Reuters reports that UK supermarket chain Morrisons "has set up a new service that will offer Amazon Prime customers same-day deliveries of groceries from its stores, deepening the relationship between the two companies." This follows a deal struck earlier this year that had Morrisons supplying grocery products to Amazon in the UK.

According to the story, the new "Morrisons at Amazon" service "will allow Amazon Prime customers in and around London to order the full range of Morrisons' products online via Amazon's Prime Now app ... Orders will be picked by shop staff at a local Morrisons store and delivered the same day by Amazon either within one hour for 6.99 pounds ($8.72) or within a two-hour slot for free."
KC's View:
Such a deal may be good for Morrisons in the short term, but it may be better for Amazon in the long term, especially if it is a) able to gather tons of information about Morrisons customers, and b) it has the intention of opening bricks-and-mortar grocery stores there along the same lines as they seem to be planning in the US. Morrisons could end up being the Trojan Horse that givesAmazon a greater foothold in the UK market.