Finally, Amazon is set to enter India’s food delivery market as per the reports. According to ET, Amazon is currently conducting a pilot in Bengaluru for its much-anticipated food delivery platform, which is expected to be launched in a couple of weeks. Currently, the platform is open only for Amazon employees and pilots are underway across five high-density pin codes in the city — HSR, Bellandur, Haralur, Marathahalli, and Whitefield.
Amazon’s move to enter food delivery is part of a larger plan to build a comprehensive product portfolio from grocery and food to electronics and home products for its top customers who have availed of its Amazon Prime paid subscription service.
Amazon has been working on its own food delivery platform since the middle of last year but launch postponed twice due to some reasons. But now, Amazon is ready to enter the market.
Executives at two restaurants, who did not want to named, confirmed that Prione Business Services, a joint venture between Infosys co-founder N R Narayana Murthy’s Catamaran Ventures and Amazon India, has been signing contracts with brands to list on Amazon, offering 10-15% commissions. The commissions are about half what Swiggy and Zomato charge its partner restaurants.
“The launch (of Amazon’s food delivery business) is scheduled in March, and the service will be launched on the Prime Now app,” one person aware of the plans said.
An Amazon spokesperson said, “We believe in innovating on behalf of our customers. As part of this commitment, we are constantly evaluating new areas and opportunities to connect with and serve our customers.”
According to experts and investors, in order to tackle Swiggy and Zomato head-on, Amazon will have to make significant investments in logistics, the restaurant ecosystem and technology, and marketing to scale its food delivery business.