AmazonLocal will email geographically-relevant offers to users every morning, and offer reward points to those using an Amazon credit card.
It enters a hotly-contested market led by Groupon which recently suffered a dip in share price owing to lower-than-expected sales.
Amazon has not yet given details of expanding the service across the UK. In the US, where AmazonLocal has been in operation for more than a year, the service is available in most major cities.
"Our aim is to be the place where customers can come to find anything that they want to buy online, so offering great deals from local businesses like restaurants, spas and theatres is a logical addition to the tens of millions of products that can already be found at Amazon," said Gordon Willoughby, director of AmazonLocal for Europe.
