Global online retailer Amazon has made its entry into food delivery business in India and will compete against existing players like Swiggy, Zomato, at a time when this segment has severely impacted due to coronavirus pandemic.
The entry of Amazon into food delivery in India expands its portfolio of services which ranges from the horizontal marketplace, digital payment, media, and now, food delivery.
In an email statement to YourStory, a spokesperson for Amazon said, “We are launching Amazon Food in select Bangalore pincodes, 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.”
Amazon’s entry into the food delivery service segment has been in the works for quite some time now and it had been conducting pilot projects with a few select restaurants.
According to Amazon spokesperson, their customers have been telling them 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 recognise that local businesses need all the help they can get,” the spokesperson.
The entry of Amazon into food delivery makes it a very interesting scenario as it has got the financial muscle and technology depth to battle with the existing players in the market.
However, this also comes at a time when there is a severe downturn in the food delivery service industry as witnessed by the jobs layoffs announced by Swiggy and Zomato.
At their peak, Swiggy and Zomato were delivering three million orders daily, which has now come down to less than one million.
At the same time, players like Swiggy has got into the delivery of grocery or daily essentials to expand its portfolio offerings.
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