Amazon launching food delivery operations in select parts of India
New Delhi, May 22: Amazon India on Thursday said it is launching its food delivery operations in select parts of Bengaluru, a move that will see the e-commerce giant compete against major players like Zomato and Swiggy in the country.
The announcement by Amazon India - which has been testing the service for a few months - comes at a time when Zomato and Swiggy have announced laying off over 1,600 employees amid the COVID-19 pandemic.
"Customers have been telling us for some time that they would like to order prepared meals on Amazon in addition to shopping for all other essentials. This is particularly relevant in present times as they stay home safe. We also recognise that local businesses need all the help they can get," an Amazon India spokesperson said.
Coronavirus: Bike rental platforms offer long-term plans, home delivery of sanitised vehicles
The company did not elaborate further on its expansion plans in the Indian market.
Recommended Video
The spokesperson added that Amazon Food will be launched in select Bengaluru pin codes. "...allowing customers to order from handpicked local restaurants and cloud kitchens that pass our high hygiene certification bar. We are adhering to the highest standards of safety to ensure our customers remain safe while having a delightful experience," the spokesperson said.
The service will initially be available in four pin codes in Bengaluru - Mahadevapura, Marathalli, Whitefield and Bellandur covering over 100 restaurants. These include outlets like Box8, Chai point, Chaayos, Faasos, Mad Over Donuts as well as restaurants from hotel chains like Radisson and Marriott (Shao, Melange and M Cafe among others).
The orders can be placed through Amazon app but the option will currently be visible to customers in the live pin codes.
Amazon has been testing food delivery service in India among its employees for over six months.
Amazon's entry in the food delivery space could be a major challenge for Zomato and Swiggy that occupy a majority share of the food delivery market in the country. Earlier this year, Zomato had acquired the Indian business of Uber Eats to strengthen its position in the Indian market.
Swiggy begins home delivery of alcohol in Ranchi, in talks with other states
However,
the
nationwide
lockdown
(which
started
on
March
25)
and
resulting
impact
on
business
of
restaurants
has
forced
Zomato
and
Swiggy
to
restructure
their
business.
In
a
blogpost
last
week,
Zomato
founder
and
CEO
Deepinder
Goyal
had
said
multiple
aspects
of
the
company's
business
have
changed
dramatically
over
the
last
couple
of
months
and
many
of
these
changes
are
expected
to
be
permanent.
"While we continue to build a more focussed Zomato, we do not foresee having enough work for all our employees. We owe all our colleagues a challenging work environment, but we won't be able to offer that to around 13 per cent of our workforce going forward," he had said.
Swiggy had said the COVID-19 pandemic has "severely impacted" its core food delivery business and this will continue to be the case over the short term. It has also said it will scale down its cloud kitchen operations as well.
Interestingly, Swiggy on Thursday said it has started home delivery of alcohol in Ranchi and is in talks with various state governments to provide support with online processing and home delivery of alcohol in their states.