Amazon joins India’s Food delivery market with ‘Amazon Food’

Square

Amazon is joining India’s online food delivery market along with top players including Swiggy and Zomato. Amazon Food was launched today in select parts of Bangalore.The e-commerce giant, has invested more than $6.5 billion in India and had originally planned to launch the service in India last year, which it then moved to March but pushed it further amid the nationwide stay-at-home order the Indian government issued in late March.

In the run up to the launch, the e-commerce giant began testing the food delivery service with select restaurant partners in Bangalore with employees earlier this year, TechCrunch reported in late February.
“Customers have been telling us for some time that they would like to order prepared meals on Amazon in addition to shopping for all other essentials. This is particularly relevant in present times as they stay home safe,” an Amazon spokesperson told TechCrunch.

“We also recognize that local businesses need all the help they can get. We are launching Amazon Food in select Bangalore pin codes allowing customers to order from handpicked local restaurants and cloud kitchens that pass our high hygiene certification bar. We are adhering to the highest standards of safety to ensure our customers remain safe while having a delightful experience,” the spokesperson added. The company did not say how soon it plans to expand Food across India.

Amazon’s foray into the food delivery market could create new challenges for Prosus Ventures -backed Swiggy, and Zomato, a 11-year-old startup that acquired Uber’s Eats business in India in January this year, and Google-backed Dunzo, which operates in Bangalore and counts food delivery as one of the biggest parts of its business.

Swiggy and Zomato, having raised more than $2 billion together, are still not profitable and are losing more than $15 million each month to acquire new customers and sustain existing ones.