The e-commerce giant Amazon is planning to launch its own food delivery service in India. Partnering with Infosys co-founder Narayana Murthy, Jeff Bezos wants to expand its brand portfolio. Amazon is already has a series of services including Amazon Prime Video, Amazon Prime Now, Amazon Music and Amazon Fresh.
The online retail giant will start its service as soon as next month from Bengaluru, India. The service is already open in a few parts of Bengaluru for Amazon’s employees. Few of the restaurants have signed contracts with the service to list on Amazon with them getting 10 to 15 percent in commission; half of what Swiggy and Zomato charge in the South Asian country.
Interestingly, Swiggy and the Zomato have a duopoly over the food delivery service in India. Uber Eats marked its presence in the country for a while until it was acquired by Alibaba backed Zomato. Even Swiggy is backed by the Chinese tech giant, Tencent. As per reports, India is a very competitive market for Food delivery service as the food cost and delivery services combined are offered by the two at subsidized rates. Both the companies incur monthly losses and aren’t profitable still.
It will be interesting to see if Amazon includes the food delivery service into its Prime Now subscription or keeps it separate. Overall, Amazon has bigger logistics network and partnerships with local shop owners, which will be crucial to be successful in the food delivery business.
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