Amazon Enters the Indian Food Delivery Market

E-commerce behemoth Amazon has initiated its foray into the food delivery business in India. Presently, the service is operational only in specific pincodes, with Bengaluru users being the first to witness the “Amazon Food” option.

Launch Details

Amazon has already onboarded numerous restaurants in Bengaluru, each adorned with a “hygiene” tag, reflecting the platform’s emphasis on safety and cleanliness.

An Amazon spokesperson highlighted the significance of this move, stating that customers have expressed interest in ordering prepared meals alongside their regular essential purchases, particularly in light of the ongoing safety measures. The spokesperson emphasized Amazon’s commitment to assisting local businesses and ensuring customer safety through stringent hygiene standards.

In February, Prione Business Services, a venture established by Infosys co-founder Narayana Murthy’s Catamaran Ventures and Amazon, reportedly enlisted several vendors, signaling Amazon’s strategic investment in digitizing and scaling up India’s small businesses.

Competitive Landscape

The Indian food delivery sector has witnessed significant competition, even amidst the COVID-19 pandemic. Zomato’s acquisition of UberEats in January 2020 bolstered its market position, although Swiggy continued to maintain a dominant revenue share.

Furthermore, travel aggregator MakeMyTrip has recently diversified into food delivery, launching an online gourmet delivery service in collaboration with luxury and premium hotel chains across Indian cities.

Hospitality unicorn OYO has also ventured into the food segment, reportedly exploring opportunities in the ready-to-eat food sector, complementing its existing cloud kitchen network.

As Amazon enters this thriving market, competition among food delivery platforms is expected to intensify, offering consumers a wider array of choices and driving innovation in the sector.

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