Amazon to take on Zomato and Swiggy with their Own Food Delivery Service


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Amazon is now planning to take on the increasing market of online food delivery in India. Two sources familiar to the development said that Amazon is planning to launch its food delivery network this year. This will increase the competition even more in the segment.

Amazon’s Own Online Food Delivery Service

Amazon Food Delivery Service in india

Amazon is working with local partners Catamaran. As per the sources, Catamaran which is founded by IT industrialist Narayana Murthy is already hiring people for the upcoming operations. The sources also mention that the company is planning to launch the service by September of this year. After that period, month-long festive seasons will start and revenues will possibly increase.

Recently, the online food delivery business in India has recorded huge growth. Acc0rding to research firm RedSeer Consulting, the growth has been around 176% in 2018. Mostly, the increasing number of the middle class has been behind this phenomenal growth. However, there are still some questions about profitability in this business.

Currently, Indian startups Zomato and Swiggy are dominating the market. Naspers and Tencent are the investors behind Swiggy while Sequoia is the investor of Zomato. In 2017, Uber Technologies joined the business with their Uber Eats. However, they are still facing heavy competition from the two other brands.

Business Standard, a local newspaper recently published a report which says that Amazon may acquire Uber Eats. Neither Amazon nor Uber commented on the matter. Currently, it is unknown if Amazon is going to start its service from scratch or they will acquire some other company.

The company launched its Prime services in India in 2016. You can expect some offers or maybe free food delivery if you already have Prime. In the last month, Amazon closed its food delivery services in the United States due to stiff competition. It is now to be seen if their business in India becomes a success.


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