Tesco has stepped up its plans to drive delivery prices down as part of its fight-back against fierce competition.

The grocer is targeting shoppers with discounts and other incentives to sign up to its Delivery Saver scheme. Offers include a £30 discount on online deliveries for the month of March.

The deal follows comments made by Tesco group multichannel director Robin Terrell at the grocer’s presentation to investors last week, when he said that the retailer would be aiming to offer “market-leading delivery pricing”.

Terrell said that delivery charges were the “number one barrier to shopping online”, and that reducing these costs would be key to attracting more customers to the service and keeping them interested. He added that Tesco’s click & collect service would be offered for free in future.

Launched in May 2012, the Delivery Saver scheme currently has 190,000 subscribers, which Terrell said was an “enormous opportunity” the grocer would be trying to exploit with continued refinements to the service.

He added: “It will be very much a customer-led, pick-and-mix-type offer. Customers will select services which are important to them and bundle them themselves; no rigid bundles, but highly personalised”.

In February Tesco reported profits of £127m from its UK online grocery operations last year, on sales of £2.5bn.