Amazon is competing with British supermarkets with the launch of its own food delivery service in the UK.

The online retailer’s Amazon Fresh service will initially offer more than 130,000 groceries to Amazon Prime customers in Central and East London, including thousands of fresh produce, dairy and bakery items.

Prime customers in eligible postcodes can now sign up for a 30-day free trial of AmazonFresh.

The service will then be available to Amazon Prime members for £6.99 a month with unlimited delivery for orders exceeding £40.

Customers will receive a refund if they are not satisfied with the freshness of the received products and will have a free substitute for any ordered item that is not available on delivery.

AmazonFresh vice president Ajay Kavan said the key to the success of the service would be a combination of low prices, vast selection and fast delivery options.

"We are launching with a comprehensive offer in a limited area and will take our time to hone and improve our service based on our learnings and feedback from our customers.

"We will be very methodical and considered in how we roll this service out further in the UK."

The launch of Amazon Fresh service, which has been operating in the US for nearly seven years, follows Amazon’s grocery supply agreement with British supermarket Morrisons.

UK supermarkets Asda, Sainsbury’s, Tesco, and Morrisons are facing increasing competition from discounters like Aldi and Lidl.

Amazon.co.uk has offered food and drink items for several years, having launched its Grocery Store in 2010.

The Grocery Store features several products including international and healthy options.

Last November, Amazon.co.uk launched Amazon Pantry, a nationwide service exclusive to Amazon Prime members.

The service offers over 7,000 everyday essentials in everyday sizes, including food and drink, household supplies, baby and child care, pet, and health and beauty products.