What's new in the world of e-commerce? Learn about e-commerce in the UK growing by almost 11% in 2020 and Amazon's plans to invest in food delivery platform Deliveroo. Also, you can read about Aldi launching its first online grocery service in the UK. Enjoy!

E-commerce in UK to grow by 10.96% in 2020 and reach €222 billion

By the end of 2020, e-commerce in the UK is expected to be worth 222.5 billion euros.

Last year, B2C e-commerce turnover was worth over 200 billion euros, meaning an increase of almost 11% in 2020 compared to 2019. 

A study conducted by RetailX shows that the likely growth of 10.96% will be the smallest growth rate for the UK online retail industry since 2016. 

Back then, the industry increased by only 4.47%.

Being the largest European B2C e-commerce market, 96% of British people are expected to be online this year.

In 2019, 87% of that online population purchased something online.

Amazon to prevent Deliveroo from bankruptcy during COVID-19

Man looking at wall where there is a painting of a big yellow fish chasing a smaller fish.

The Competition & Markets Authority (CMA) came to conclusion that there would be no stopping Deliveroo's exit from the market if not for Amazon's significant access to funding.

According to the CMA, during this time of crisis, Amazon was the only company willing and able to provide such a contribution.

The imminent danger of Deliveroo exiting the market would be worse with regard to competition than approving Amazon investing in the food delivery platform. 

Therefore, the deal was approved. 

With this, the CMA is "reacting quickly to the impact of the coronavirus", said Stuart McIntosh, chair of the CMA’s independent inquiry group. 

He also said that they've been considering the impact for businesses involved in this transaction. Moreover, the CMA looked into what it would mean for customers. 

McIntosh also said that currently an investment appears to only be feasible by Amazon.

Hand passing a lifebelt with money attached to it to another hand.

Without this investment, Deliveroo wouldn't be able to meet financial commitments. Thus, it would have to exit the market.

What about the impact on consumers? They would have to face higher prices or a reduced quality of service. Also, it might even lead to customers being cut off from online food delivery entirely during such an important moment. 

To limit difficulties for Deliveroo, the CMA approved of Amazon's provisional investment. 

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ALDI launches online grocery service in UK

A shopping cart formed with an USB-cable and an optical mouse.

Due to the Covid-19 lockdown, German discounter Aldi has started selling groceries online in the United Kingdom. 

Aldi put together parcels containing 22 essential items to be delivered to those in isolation.

Priced at £25, these boxes include tinned food, pasta, rice, soap and toilet paper. These parcels are limited weekly to one per customer. 

Also, these special boxes are to be delivered as far as the door of the customer, including a contactless delivery.

Before this campaign, the discounter only sold 'special buys' products online.

For the first time ever, Aldi is now distributing food items online.

Considering that some customers aren't able to visit physical stores at the moment, Aldi decided to provide safe and quick access to groceries and essential household items online.

Aldi is the latest supermarket chain in the UK to start selling these products on the internet to help at-risk consumers. 

Due to the coronavirus pandemic and the higher demand for several household items, many supermarkets are trying to boost their online grocery services.

Before Covid-19, most grocery shopping was done in local stores, only 8% took place online.

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