Amazon’s Venture into Food Delivery: Plan & Aftermath

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An app that delivers clothes, books, electronic devices, gift cards, baby care items, furniture, grocery and now food.

If it is not clear, I was referring to Amazon and its plan to launch a food delivery platform in India. Let’s dive deeper and find out all about it.

What is Amazon Entering Into?

Food delivery market in India has many aggregators running their businesses successfully. Zomato, FoodPanda, UberEats and Swiggy are the foremost apps for delivering food in India.

Food Delivery

Food delivery market in India has very promising potential and is expected

to grow at over 16% per annum to touch USD 17.02 billion by 2023 – Research by, Market Research Future

Rising no. of the working class, especially women, is considered as a contributing factor to the tremendous growth of the food delivery market in India. Other factors being ease and efficiency.

What’s the Plan?

Amazon is working with local partner Catamaran, founded by IT industrialist Narayana Murthy, and has begun hiring staff for the new operation.

Amazon is also roping in cloud kitchens like FreshMenu, Rebel Foods, Foodpanda and Eat.Fit as well as top restaurant chains such as McDonald’s, Domino’s, KFC, and regional chains.

Amazon’s two-hour grocery delivery platform could be the primary vehicle for its foray into food delivery business in India.

Food Delivery

Currently, restaurants are protesting against the heavy discounts pushed by top food delivery aggregators.

The company is said to be luring in restaurants with competitive commission fees. According to a media report which cited an Amazon executive, the company is asking the restaurants for a mere 6-7% commission on its food delivery services, as compared to the 15-17% commission charged by the existing players.

Food Delivery

The ecommerce behemoth is actively pitching to break exclusivity contracts restaurants have signed with food aggregators, the company executive said.

Did You Know? Amazon has also been reportedly preparing itself to start delivering medicines & beauty products.

It is likely to be launched around this Diwali from Bengaluru under the brand ‘Amazon Restaurant

Amazon will be targeting the top metro cities for its food delivery business as categories like food and grocery delivery constitute a considerable proportion amid the daily services requested by a customer.

Aftermath

This collaboration will increase tremendous competition in the Indian food delivery market. The existing food delivery apps in India pretty much suffices the food delivery needs.

Amazon is one of the topmost ecommerce retailers in India. It is very likely that consumers would want to try their food delivery service. It will not be long before it disrupts the pre-established markets of existing food delivery apps.

Food Delivery

Amazon last month closed its food delivery operations in the US in the face of stiff competition. However, with a powerful combination of new technology and business model innovation, its collaboration with food delivery app Deliveroo in the UK is doing extremely well.

It is going to face tremendous competition in India as well, but it is very difficult to be certain about its success.

Also Read: Rise of Multipurpose Apps: Reason Why Big Businesses & Startups Are Making The Switch

Conclusion

Amazon is an e-commerce giant, its plan of venture into food delivery is going to make it the only app that delivers most verticles of consumer goods.

It also indicates the significance of multipurpose apps in the market. The app ecosystem is about to get a lot complicated!

Food Delivery

 

Ready to beat the competition with your own multi-purpose app solution like Amazon! Know More

 

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