Asda has launched a monthly delivery pass for online grocery shoppers which undercuts rival services from Tesco and Ocado.

The loyalty deal allows Asda shoppers as many deliveries as they want in a month, and the pick of its delivery slots, for a fixed price.

Asda’s £5 introductory offer costs half that of Tesco’s and is £5.99 less than Ocado’s. Under the deal, shoppers receiving five orders in a month would save £17. The price will rise from £5 to £8 from September 14.

Tesco last year went toe-to-toe with Ocado, which pioneered delivery passes, with its own pass. Such passes work out cheaper for consumers who buy reguarly from the particular retailer.

The Asda pass is limited to orders above £25 and customers can only receive one order per day.

Competition in the online grocery sector is heating up as Morrisons and the Co-op prepare to enter the rapidly growing market.

The value of the UK online grocery market was £4.8m in the 52 weeks to August 18.

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