Amazon has been working on rolling out their own food delivery in India for many months now to compete against Zomato and Swiggy. It is called “Amazon Food” and has finally started service in a few locations with Bangalore, India.
Amazon Foods has begun service in parts of Bellandur, Haralur, Marathalli and Whitefield, all in Bangalore, India. Users can access it via the Amazon app and will be able to see a catalog of local restaurants and cloud kitchens, which Amazon claims to have passed the highest standards of safety and hygiene.
Amazon has been bringing over restaurants with lucrative deals since late last year. While they wanted to launch during March, they pushed back the date due to the nation-wide lockdown.
At the moment, two companies are Zomato and Swiggy are the dominating the food delivery market in India. However, with the COVID-19 outbreak and the nationwide lockdown has put the two companies in a very difficult situation, causing huge losses and forcing them to lay-off employees. The fact that the Indian food delivery business is not profitable does not help either.
Considering all of this, Amazon has entered the market at an opportune moment. They will soon begin rolling out the service to more cities nationwide. It will be interesting to see how Swiggy and Zomato will respond to company that has nearly unlimited resources.