Amazon and Morrisons have increased the reach of their online tie-up, with the online giant now delivering Morrisons’ groceries to customers in London and Hertfordshire.

From today, Amazon Prime customers in selected postcodes can order a full Morrisons shop online via the Prime Now app, which will be picked at a local Morrisons store and delivered same day by Amazon either within one hour for £6.99 or in a two hour slot for free. Morrisons said that the service, which initially launched in June, is expected to contribute to a £50million - £100 million “incremental profit opportunity”.

David Potts, chief executive, commented: "As food maker and shopkeeper, we have unique skills to help build a broader new Morrisons through capital light growth. 'Morrisons at Amazon' is another exciting joint opportunity and makes Morrisons good quality, great value-for-money products available to even more customers." Rival online delivery service Ocado, which also has an agreement with Morrisons, saw its share price dip following the announcement.