Amazon Food Delivery Service Set To Launch In India; Will Compete With Swiggy And Zomato

Amazon, after success in the e-commerce business and video streaming services, is all set to step into the food delivery space in India starting October.

According to a report, the company will start the service starting from metropolitan cities like Bengaluru, followed by Mumbai and New Delhi. The service will start under the Prime Now banner. Here are the details:

The further report also claimed that the company will charge only one-fourth of the commission from the restaurants. This might be a big competition to rivals like Zomato and Swiggy. Moreover, Amazon has already started signing up restaurants with five to six per cent commission. Where, the competitors are at 20 per cent.

According to The Live Mint source, Amazon is in the last stage of acquiring Foodpandafrom Ola.
"They were talking to multiple players, but the Foodpanda deal is almost done," Mint quoted source. "Since Amazon is going the marketplace route, for now, it is acquiring the remainder of Foodpanda's infrastructure which includes restaurant connections and integration, the menus, order processing methodology, delivery executives, etc."

"They are talking about super-aggressive commissions, to begin with, and looking at sub 10%. But I am sure they will increase with time. They should ideally be live in next 30 days," Mint report quoted the owner of a restaurant chain as saying.

To recall, back in 2015 Amazon launched its restaurant delivery service globally, but the business was shut down in June 2019. However, the company has not given up on the business and invested in Deliveroo which is a London-based start-up, and now in India.

Let's see when the company is planning to launch the service and how it competes with existing players like Swiggy, Zomato, and Uber Eats.