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Amazon to expand grocery subscription service to Australia Inc. plans to expand its grocery subscription service to Australia in early 2019, The Australian Financial Review reported Dec. 12, citing Amazon Australia country manager Rocco Braeuniger.

The Seattle-based e-commerce giant launched Subscribe & Save in 2007, offering discounted grocery items with free shipping. The program lets customers subscribe to discounted products in categories such as baby care, grocery, pet supplies, household, health and wellness, and beauty and personal care, and have them automatically delivered at regular intervals.

Braeuniger told the newspaper that Amazon wants to launch Subscribe & Save in Australia to complement the recently launched Pantry Food and Drinks category on its online marketplace in the country.

The news comes as the company started offering same-day delivery in select areas of Sydney and Melbourne, according to the report.

Amazon Australia's service expansions pose a challenge to local supermarket leaders Woolworths Holdings Ltd. and Coles Group Ltd.

Amazon debuted its retail business in Australia in December 2017.