Amazon Plans To Launch Its Food Delivery Service In India To Compete With Zomato & Zwiggy

According to the two confidential sources, Amazon has recently had a plan to aim at the growing online food delivery business in the Indian market in 2019. This move must raise lots of competition in the developing market.

The Seattle-headquartered tech company is partnering with IT industrialist Narayana Murthy’s Catamaran, as well as employing staff to carry out this promising project. Its food delivery service is expected to be available in restaurants before India’s festive season begins in September.

The growing middle class in India is the one to promote the development of the online food delivery sector. According to RedSeer Consulting, the number of orders showed a 176 percent increase last year.

However, it’s difficult to determine the profitability of this industry which is now dominated by Naspers-backed Swiggy, Zomato, and Tencent.

Back to two years ago, in 2017, Uber first introduced its food delivery service in India; however, the ridesharing provider can’t compete with the local companies in the same market.

According to a report published by Business Standard on July 29, Amazon has negotiated to acquire Uber Eats.

The local company Catamaran hasn’t given any comment on the collaboration with Amazon. As per Amazon and Uber, these two companies claimed that they wouldn’t respond to rumors.

On the contrary, Ola, the big rival of Uber, introduced its food delivery service and acquired the mobile food delivery marketplace Foodpanda two years ago. At the moment, it is aiming to develop its own kitchen brand, instead of marketplace deliveries.

In June, Amazon had to end its operations in the food delivery sector in the US market because of the severe competition.

Along with its focus on delivery service, the US company hopes to gain much more interest from potential customers via its current services.

In 2016, Amazon brought its Prime services to Indian users and provided a variety of services from music and video streaming to groceries delivery in many Indian cities.

In terms of the Indian market share, the company has managed to beat over Flipkart of Walmart Inc. Both of these companies have constantly set up new plans to engage more customers in promising markets.