I don't know if Amazon sell groceries in the UK, but Asda, a British supermarket chained now owned by Walmart, has been operating a delivery service for some time now.
I don't use it, nor the Tesco equivalent, and I have no allegiance to any one food chain-shop or supermarket - a good deal of my food shopping is from independent shops, Aldi, Lidl and Co-op; and I visit their premises.
I know a family that should use it ... but probably won't. They get the exact same groceries every time. But they send other people to get it, and conveniently "forget" to give them enough money to pay for it. No way will they change to a delivery since it would require THEM to pay the full cost of their own groceries.
I wouldn't use it, just because I have to see if there are any "surprises" I want to buy. LOL
I actually had my groceries delivered by Wal-Mart last night. I have never used Amazon for groceries... well... I have some things shipped through Amazon, like household supplies and pet food.
One of the reasons why I have been going through Wal-Mart is that they started with a free pickup service. That made my life so easy. As we ran low on things in the house, I'd just add them to my cart in the app. It would save hours each week, purely because I wasn't scouring the shelves myself and I didn't have to take my kids in, which creates stress and always increases my bill. I use the pickup service a lot. However, Wal-Mart also recently sent me a card for four free deliveries. I've used three of them. For the first two, the rules were very clear: Do not tip your driver. The driver is not allowed to accept tips. I was good with that. Last night, I subscribed to the alert service, so I could see when my order left the store. To my surprise, the link I was given directed me to DoorDash. I didn't realize that's who was serving me. And, this morning, there was an alert on my phone telling me to tip my driver. It's not that I don't think the drivers shouldn't be tipped, but I don't like them changing the rules on me and that changes the affordability of the service. If I can't afford a tip, I'm not using the service. So, really, it's not just the $7-10 delivery fee... It's probably $20 in tips/ fees with Wal-Mart. I won't be using the delivery again. It's just not worth it to me. (And, yes, I tipped my driver.) I will, however, continue to order online and pick up at the store. I would surmise that the bulk of Wal-Mart shoppers are like me: cheap. We don't want to pay. That's why we shop at Wal-Mart in the first place.
Equally, I don't have faith in Amazon's distribution. I trust them for non-essentials and non-perishables. But, their drivers are kind of iffy. I never know where something will be left or how they'll handle it. They often show up in unmarked vehicles in regular clothing. I have more confidence when it's a traditional delivery service, like UPS. And, if it comes down that I should be tipping my Amazon delivery drivers, I'm so out. I won't order anything from Amazon again.
I have historically turned to Wal-Mart for most items. However, I have a Prime membership now, and so I do go to Amazon for odds and ends when I don't have enough for a grocery order or don't want to go to the store. If we run out of light bulbs or hand soap: Amazon. I needed a dress at the last minute and didn't want to go to several stores: Amazon. I need to feed my family for a week: Wal-Mart. I think my personal behaviors with the two brands is probably the way most people handle it. Amazon will never be my grocery store and Wal-Mart will never be the place I go for a cute dress to wear to an event. It's those nickle-and-dime items between that they're fighting for with me, and that always comes down to "How badly and how quickly do I need this?" If the item can wait for a grocery order, Wal-Mart gets it. If I need it in a day or two, I go to Amazon. If I need it on the same day, I go get it.
That said... I think these companies are appealing to different markets. Amazon is rarely the bargain-hunter's dream. It's a get-what-you-want-when-you-want-it service, and you pay for that privilege. Wal-Mart is geared toward thrifty folks who are willing to sacrifice looks or brand names to save. I cannot see many Wal-Mart shoppers moving to Amazon for convenience. And, I don't think many Amazon shoppers will switch to Wal-Mart because the variety and quality isn't there. I'm also not keen on both companies outsourcing their driving, which makes me uneasy about using them altogether.
Umm... so... will it help them compete? Yes and no. I don't think it will help them get a bigger share of the market, but I do think it will prevent them from losing what they have.
Benedict Arnold 