Amazon forays into food delivery business in India
NEW DELHI: Sending a strong signal to Zomato and Swiggy which have been severely hit by Covid-19, ecommerce giant Amazon with deep pockets has entered the vast online food delivery market in India, by launching Amazon Food at select pin codes in Bengaluru.
Currently, Amazon Food is allowing customers to order from hand-picked local restaurants and cloud kitchens that pass its “high hygiene certification bar.” “Customers have been telling us for some time they would like to order prepared meals on Amazon in addition to shopping for all other essentials,” an Amazon spokesperson said.
“This is particularly relevant in present times as they stay home safe. We also recognise local businesses need all the help they can get,” the spokesperson added.
The India market is piping hot as per a recent study by business consultancy firm Market Research Future. The online food ordering market in India is likely to grow at over 16 per cent annually to touch $17.02 billion by 2023.
The e-commerce giant has already pumped in over $6.5 billion in India and the vast online food landscape is a lucrative opportunity once the lockdown opens and people get to order food more.
Reports surfaced last year amid Zomato-Swiggy merger talks that Amazon was gearing up to launch its own online food delivery division to compete with food delivery apps in the Indian market. The retail behemoth already has a robust existing workforce in the country that can be utilised along with hiring more delivery partners to beat the competition.
Prabhu Ram, Head-Industry Intelligence Group, CMR, said the food delivery business is no longer a two-horse race and is increasingly witnessing cutthroat competition. “With the entry of new players, including the likes of Amazon and Uber Eats, a potential merger of Zomato and Swiggy would make sense,” Ram said.