Amazon launches a food delivery service ‘Amazon Food’ in India
Amazon India has finally launched its long rumoured food delivery arm “Amazon Food” in selected pin codes of Bengaluru. The service is now live in parts of Bellandur, Haralur, Marathalli and Whitefield.
Amazon also boasts “hygiene certified restaurants and contactless delivery” on its app.
Amazon India wanted to launch this food delivery service by Diwali last year but couldn’t attract many restaurants on board. Then the target was pushed to launch in March 2020 but delayed again due to pandemic. Now when other food delivery giants like Swiggy and Zomato are at an all-time low due to the Covid-19 pandemic, Amazon India has jumped into the market with high hopes.
Food delivery market in India is still not profitable. Foodpanda and Uber Eats like big companies shut their shop by selling business. Several startups launched and couldn’t survive for more than 6 months. Swiggy and Zomato are the two key players who have raised more than $2 billion together but are still struggling to be profitable.
Amazon Food is just in select locations of Bangaluru. We can’t say when the service could come in other cities. Restaurants are also struggling due to lockdown and COVID-19. People are avoiding ordering from restaurants. This wasn’t the right time for Amazon to launch a food delivery service. Let’s see how well it goes in coming weeks.