Amazon began offering online food delivery, called Amazon Food, in Bengaluru. With this step, the company will compete with established players Swiggy and Zomato.
This step seems meaningful because Swiggy and Zomato have eliminated many roles in the past few months. Swiggy cut 1,100 jobs, Zomato cut 13% of the workforce is recent, and Swiggy has also reduced its kitchen cloud operations. This might continue for some time also because of COVID-19. “A large number of restaurants have been permanently closed, and we know this is only the tip of the iceberg. I hope the number of restaurants will shrink by 25-40% over the next 6-12 months, ”Deepinder Goyal, co-founder and chief executive of Zomato countries.
Amazon originally planned to launch service last year, but pushed into this year. “Customers have been telling us for some time that they want to order fast food on Amazon in addition to shopping for all other basic needs. This is very relevant today because they remain safe at home. We also realize that local businesses need all the help they can get. We launched Amazon Food in a certain Bangalore pin code that allows customers to order from selected local restaurants and cloud kitchens that pass our high hygiene certification bar, “said Amazon spokesman stated.
Amazon Food will now be available to residents in Whitefield, Bellandur, Marathahalli, and Mahadevapura in Bengaluru. In preparation for the launch, the company began testing food delivery services with certain restaurant partners in Bangalore. Some restaurants and cloud kitchens that have partnered with Amazon include Adiga’s, FreshMenu, Paradise Biryani, Box8, Faasos, and Mad Over Donuts.
With this step, it seems that the duopoly in the market may change over time.
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