Amazon enters food delivery, launches service in Bengaluru
Amazon enters food delivery, launches service in Bengaluru – Amazon on Thursday announced its raid food delivery with the launch of Amazon Food in Bengaluru, taking Zomato and Swiggy head-on. The service is currently sleep in four-pin code areas of the town.
Currently Zomato and Swiggy are struggling to remain afloat as Covid-19 has dealt a severe blow to the food business so move comes at a time when market leaders are struggling as the order volumes for Swiggy and Zomato are merely at 30%-35% of what it wont to be during pre-COVID times. With Covid-19 spreading rapidly, consumers massively hamper on the intake of out of doors food and opted for home-cooked meals. Closure of restaurants and company India’s move to figure from home also hammered businesses. Office-goers form a serious chunk of food aggregators’ customer base further added to the woes as Swiggy and Zomato have started grocery delivery to sustain and have also cut jobs to scale back costs.
What perhaps explains Amazon’s food business launch amid the pandemic is that they might gradually want to increase the power to other categories like grocery. “Their current grocery businesses — Amazon Fresh and Amazon Pantry — are struggling. they could be testing it (the food platform) for last-mile delivery of grocery,” said Satish Meena, senior analyst at Forrester Research.
Amazon said it’s allowing customers to order from handpicked local restaurants and cloud kitchens that pass the firm’s high hygiene certification bar. “We are adhering to the very best standards of safety to make sure our customers remain safe while having a pleasant experience,” the corporate said during a statement.
The company has been testing pilots of the food delivery platform in Bengaluru for a few times as the companies are battling much less business and closure of restaurants due GDP slowdown and a large number of Coronavirus cases emerged, analysts at Edelweiss Research said. “This will help Amazon target a good bigger share of the customer wallet if this becomes successful pan India,” the firm said.
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