Report: Tesco to compete with Prime delivery

A U.K. grocery giant is reportedly adding free home delivery to its paid loyalty program.

According to The Guardian, Tesco plans to eliminate its per-order fee for delivery of online purchases (currently about $6 USD) for members of its Clubcard Plus loyalty program. The top-tier program, offered alongside Tesco’s established Clubcard loyalty offering, provides a variety of discounts and perks for a monthly fee of roughly $10.50 USD. 

Amazon is reportedly planning to expand U.K. availability of its Amazon Fresh online grocery delivery service, including free deliveries of some orders to Amazon Prime members, by the end of 2020. Data from Mintel indicates Tesco currently holds close to one-third of the U.K. online grocery market, while Amazon only holds 3%.   

“I understand the move, Dave Lewis, CEO of Tesco, said in an interview with The Telegraph. The idea of Prime is very similar to where we are in Clubcard Plus, in terms of bringing a whole bunch of benefits together. So an opportunity into the future for us is to think about how we put delivery into Clubcard Plus. That’s always been the direction of travel.”