Amazon has finally entered the food delivery segment in India, and the company is taking orders in select parts of Bengaluru this week. With this, Amazon will be competing with market giants like Swiggy and Zomato among others.
The company was expected to start its service in Bengaluru by March itself but it seems the nationwide lockdown forced them to delay the service, which is now available for select pin codes in the region. The feature is available through the main app itself, making sure you don’t have to download another app.
Amazon is entering the segment at a time when its rivals are facing a drop in demand, which has made them change their delivery models, which now includes grocery and vegetable service also. Not only that, but both Swiggy and Zomato have also laid off 1100 and 500 of their employees respectively, as they look to manage their finances when the market is hardly running at full capacity.
The food delivery segment has mostly been running on big-ticket discounts, courtesy of a large round of investor fundings. But with Amazon, things will be mostly supplemented by its billion-dollar investment, which is likely to help struggling business and restaurateurs to stay afloat in the country. The company hasn’t shared details about how the restaurants are being picked for its service but if you’re in the region, Amazon app will help you select from a host of places that are providing food right now.
With its launch in Bengaluru, one can expect Amazon to expand its delivery service to other parts of the country, especially in the metros where the need is much higher. This development comes at a time when both Swiggy and Zomato, owing to lack of demand for outside food, started catering to delivery of essential services. In fact, Swiggy opened its channel to do hyper-local delivery of packages with the Swiggy Genie program that rivals Dunzo.