Friday, September 17, 2021

UK

Co-op faces union heat over Amazon tie-up that will see customers ordering their shopping from the tech giant's website

By MATT OLIVER FOR THE DAILY MAIL

PUBLISHED: 16 September 2021

Co-op customers will soon be able to order their shopping from Amazon’s website.

The supermarket chain said the service would be trialled in Glasgow before being rolled out to other parts of the UK later this year.

It will allow Amazon Prime customers to do their full Co-op shop on Amazon.co.uk. Same-day delivery and two-hour scheduled time slots will be free on orders worth £40 or more, or cost £3.99 for orders under that amount, with a minimum shop of £15.


Co-op said the service allowing customers to order groceries from the Amazon website would be trialled in Glasgow before being rolled out to other parts of the UK later this year

However, Co-op, which also provides funerals and other services, reported a loss of £15m for the six months to July 3, compared with profits of £56m a year ago, as it was hit by supply chain problems and the pandemic.

Welcoming the deal with Amazon, Co-op boss Steve Murrells said: ‘We’re driving forward with exciting plans to provide rapid kerb-to-kitchen grocery delivery.’

However, union chiefs are enraged, claiming customers would be ‘shocked’ by Co-op’s partnership with the US tech giant.

Defending the tie-up, Murrells insisted Amazon ‘wants to be a force for social good’.

But Andy Prendergast, national officer of the GMB union, which represents Amazon workers, said: ‘It’s really disappointing to see a company with a proud ethical heritage like the Co-op teaming up with Amazon: a tax evading multinational with a horrifying health and safety record.’

An Amazon spokesman said it offered staff ‘excellent pay, benefits and opportunities for career growth, all while working in a safe, modern work environment’.

Co-op under fire for delivery deal with 
“tax-evading” Amazon

Simon English
Thu, 16 September 2021

(Getty Images)

Co-op Group today unveiled a delivery deal with Amazon, raising eyebrows in the sector and earning the immediate ire of unions.

The member owned grocer, insurer and funeral provider is trialling a deal that will see its food sold via Amazon to Prime subscribers. Orders over £40 will be delivered free, starting in Glasgow initially with plans for a quick roll out elsewhere.

Andy Prendergast, national officer of the GMB, said: “It’s really disappointing to see a company with a proud ethical heritage like Co-op teaming up with Amazon: a tax evading multinational with a horrifying health and safety record.

“Amazon has made billions throughout the pandemic and pays virtually no tax. Bosses won’t even recognise a union to improve the health and safety of their beleaguered workforce.”

Co-op chief executive Steve Murrells said he wasn’t “here to defend Amazon” but added: “We have been working with Amazon for many years. From our point of view it allows us to get more ethically sourced products to more homes. It is a good joining of bedfellows.”

It declined to give financial details of the deal with Amazon, saying they are “commercially sensitive”.

In the half-year to July 3 the group made a loss of £15 million. Debts jumped from £550 million to £712 million. Food sales are up 6.5% compared to pre pandemic levels.

Murrells says the group is investing heavily in staff and stores.

He says a shortage of lorry drivers is hitting supplies.

“If you got into any retailer today you will see gaps on the shelves, it is not a Co-op problem, it is not a UK problem it is a global problem.”

He says the situation will be mostly resolved come Christmas.

The Co-op has a “ten-point climate plan” including a commitment to match the pricing of own brand plant-based foods with meat-based equivalents.

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Co-op criticised after announcing new partnership with Amazon in bid to double online sales


Daniel Keane
Thu, 16 September 2021


( Co-op/PA)

Co-op has faced criticism after announcing a new partnership with Amazon and extending robot deliveries as part of plans to double its online sales by the end of the year.

The alliance allows Amazon Prime customers to do their full Co-op grocery shop on the Amazon website with same-day delivery and two-hour scheduled slots.

The partnership launched in Glasgow and surrounding areas on Thursday, but will be rolled out to other parts of the UK before the end of the year, with the aim of it becoming a nationwide service at an unconfirmed date. All orders over £40 will be delivered for free by Amazon’s Flex service.

Co-op, which prides itself on its ethical image and sustainability, has faced criticism from the GMB trade union over the move. Amazon has been accused of not paying its fair share of tax in the UK and poorly treating the drivers who deliver its goods.


Andy Prendergast, national officer of the GMB, said: “It’s really disappointing to see a company with a proud ethical heritage like Co-op teaming up with Amazon.

“Amazon has made billions throughout the pandemic. Bosses won’t even recognise a union to improve the health and safety of their beleaguered workforce.”

Steve Murrells, the Co-op’s chief executive, said he wasn’t “here to defend Amazon” but added: “We have been working with Amazon for many years. From our point of view, it allows us to get more ethically sourced products to more homes. It is a good joining of bedfellows.”

Meanwhile, Co-op is also extending its partnership with Starship Technologies, the robot company launched by the co-founders of Skype, which allows the delivery of groceries in as little as 20 minutes.

The convenience retailer will increase the number of autonomous vehicles operating and delivering Co-op groceries from 200 to 500 by the end of this year, extending them from Milton Keynes and Northampton to Cambridgeshire and then into the north of England.

A Co-op spokesperson said: “We aren’t compromising our ethics and principles and the extension of the partnership is about getting our ethically sourced products into the hands of more people.

“It reflects the support Co-op members have shown for Amazon’s products by using its lockers and click and collect services through hundreds of our stores for a number of years.”

The news comes as Mr Murrells warned of food price increases and pressure on its annual profits from the growing supply chain crisis. He said the company will look to offset the cost pressures “as best we can”, but that “some of that will filter down” to customers.

Co-op reported underlying pre-tax operating losses of £15m for the six months to 3 July, compared with profits of £56m a year ago, as it was hit by product availability issues and the continuing impact of the pandemic.

John Boumphrey, Amazon UK country manager, said: “Our partnership with Co-op is another way for us to provide our Amazon Prime customers with more choice, value and convenience to shop for their everyday groceries.”

A spokesperson for the firm said they offered “excellent pay, benefits and opportunities for career growth” in a “safe, modern work environment”.



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