Swiggy, Zomato To Get New Competition From Amazon Food Delivery

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Amazon is looking to enter the food delivery service in the Indian market. It seems like Amazon is gearing up to compete with local food delivery services like Zomato, Swiggy, and a few others. A report citing a person familiar with the plans says that the online retail giant is expected to launch its food delivery service in India.

Swiggy, Zomato To Get New Competition From Amazon Food Delivery

 

Amazon Food Delivery

Looking back, Amazon CEO Jeff Bezos visited India a month ago and announced an investment of over $1 billion. Bezos said the investment would be directed to digitize the small and medium enterprise sector in the Indian economy.

A report by TechCrunch notes that the Amazon food delivery service would be part of Amazon Prime Now or Amazon Fresh platform. Apparently, Amazon has been working on the new service for several quarters in Bengaluru and had planned on launching it earlier. There's no mention of the cause of the delay, but it would be launching in the coming months.

Amazon Competes In India

It might be an advantageous time for Amazon to enter the food delivery business in India now. Incidentally, Uber exited the food delivery service in India and merged with Zomato. Currently, Swiggy and Zomato are the largest food delivery players here.

Ola acquired Food Panda, however, a report claimed that Ola would be suspending the business within 18 months of the acquisition. Moreover, several reports reveal that restaurants and customers are unhappy with the existing food delivery services.

A recent report reveals Swiggy had spiked the prices on the app when compared to the physical menu. Further, the National Restaurant Association of India had slammed Zomato for extending its Gold program on its delivery platform.

That's not all. Amazon is already competing with various grocery delivery services as well. Amazon launched the AmazonFresh service in India last year that brought in competition to startups like Grofers, Big Basket, and so on. Moreover, the Amazon competition with Flipkart is more evident in terms of online retail.

 

So far, Amazon hasn't said anything about the food delivery service. The company has noted that it would reveal the details officially when it is ready.

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