U.K.-based grocery giant jumps into the one-hour delivery game

Tesco is launching a one-hour delivery service — a move that will enable the chain to go head-to-head with Amazon.



The U.K.-based supermarket giant introduced its new Tesco Now app, which enables shoppers in central London to choose from a range of 1,000 products, and have them delivered within an hour. Merchandise crosses categories such as fresh fruit and vegetables, meat, bakery goods and dairy, as well as pet, baby, health and beauty products.



Here’s how the service works: Shoppers use the app to select up to 20 items. Orders will be picked in a local store and delivered to customers — via moped — within 60 minutes. Customers will also be able to track their order status via the Tesco Now app, which also delivers live updates on the progress of their order, Tesco reported.



The service is available between 8 a.m. and 11 p.m. on weekdays, and 9am until 11pm at weekends. The service is priced at £7.99 with no required minimum. If customers are willing to wait two hours for delivery, the price drops to £5.99. The "last-mile" logistics and deliveries for the service are being handled by Quiqup, a London-based delivery startup, according to Business Insider.



The new service complements Tesco’s existing online grocery options available in London and the South East. These services both feature same-day delivery and same-day click-and-collect options.



“From forgotten essentials to that crucial final ingredient, Tesco Now can get them to our customers' door within the hour,” said Adrian Letts, Tesco’s online managing director. "Shoppers’ needs are changing and we want to offer a range of services that allow them to shop with us in a way that suits their needs.”



The grocer launched Tesco Now in response to Amazon's invasion into the U.K. grocery market. The app-based delivery service will also help Tesco battle traditional competitors, including Sainsbury’s, which launched one-hour delivery last year, as well as increasing pressure from German discounters Aldi and Lidl, according to Reuters.