Amazon plans to give a tough competition to Swiggy, Zomato, enters food deliver service
Food unicorns like Swiggy, Zomato are now going to breathe heavy competition, as eCommerce giant Amazon has now stepped into their world. Amazon has now ventured into the food delivery segment in India to explore other revenue models.
As of now, Amazon India has chosen Bengaluru to start its food delivery pilot, and is currently delivering to four pin codes in the city. Though, it is nowhere near that if the firm will expand this service beyond Bengaluru anytime soon.
"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. 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," said an Amazon spokesperson.
With select pilots in Bengaluru, Amazon is looking to provide ‘contactless delivery’ of food from local restaurants, around the vicinity of the user. The past two months have been particularly challenging for large e-commerce players, which were forced to sell only essentials during the nationwide lockdown that began on 25 March.
Earlier this month, Amazon, in an earnings call, said its India operations were the worst hit by the covid-19 pandemic as the government ordered the company to halt sales of almost all items.
"I think the biggest impact internationally has been in India where, of course, similar to all companies, we’re now only fulfilling essential goods such as grocery; so that’s cut back a lot on our offering and we will further expand when the Indian government announces that we’re allowed to resume operations," said Brian T. Olsavsky, senior vice-president and chief financial officer.
Earlier this week, American retailer Walmart, which owns Flipkart, also said net sales for its international business were hit as its Indian subsidiary was unable to make non-essential deliveries during the virus lockdown.
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