Ecommerce News India - Amazon's move to enter food delivery is part of a broader plan to build a comprehensive portfolio of products, from groceries and food to electronic products and household products, to its main customers who have taken advantage of the subscription service Amazon pay.
Bangalore: In the battle for the mind of the consumer to share in a very competitive delivery space dominated by established players Swiggy and Zomato.
With its massive investment in the two-hour supply chain for the Amazon Now portfolio, the US retailer. Now he is testing his long-awaited catering project on demand in selected areas of Bengaluru. This occurs at a time when Swiggy and Zomato reduced discounts and tightened cost structures, and with Uber completely receding from the Indian food delivery sector, after UberEats India sold to Zomato last month for a stake 10%, however, keeping your foot in the door.
Amazon's move to enter food delivery is part of a broader plan to build a comprehensive portfolio of products, from groceries and food to electronic products and household products, to its main customers who have taken advantage of the subscription service Amazon pay.
"Amazon doesn't care about time ... You can be the last in the market and still win," said one of the consumer's Internet investors.
The investor said that among all consumer technology products in the country, food delivery gets the most traction, followed by groceries, fast-moving consumer goods and electronic commerce in general. As of now, Amazon's food delivery platform is only open to employees and test employees who are in five high-density city icons: HSR, Bellandur, Haralur, Marathahalli, and Whitefield, according to executives and partners of restaurants.
The executives confirmed that Prione Business Services, a joint venture between Infosys NR Narayana Murthy’s Catamaran Ventures and founder of Amazon India, has signed contracts with brands to include them in Amazon commissions, offering 10-15% commissions.
Commissions are about half of what Swiggy and Zomato charge to the associated restaurants. "It is scheduled to be launched (from Amazon Food Delivery) in March, and the service will be launched in the Prime Now app," said one of the people familiar with the plans. This initiative is being led by Raghu Lakkapragada, director of product management at Amazon, according to sources and emails are seen by ET.
Ultimately, he said, will seek to launch exclusive brands in association with restaurants for specialty foods, including Koreans and Japanese.
"We believe in the innovation of customers. As part of this commitment, we are constantly evaluating new areas and opportunities to communicate and serve our customers." Industry experts and investors have said that Amazon must make significant investments in logistics, restaurant ecosystem, technology, and marketing to expand its food delivery business, in order to process Swiggy and Zomato
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