Amazon trials online food delivery in India
Internet giant Amazon is entering the meal delivery business with a four-part process in Bangalore in India.
The move comes when the pandemic blockages cause an increase in online orders in some places, such as the United States.
However, in India, the two major market players have experienced a significant drop in demand.
Uber Eats retired from the country last year, selling his business to local rival Zomato in exchange for a 10% stake in the Indian start-up.
Amazon has set ambitious plans for expansion in India, where it has invested around $ 6.5 billion. Like its rival Walmart, it sees significant growth potential in the rapidly growing country.
He reportedly planned to start the food sector before the blockade, but was delayed after blockages and restrictions on the sale of non-essential items entered into force.
About 100 restaurants and kitchens are currently involved in experimentation in Bangalore, a technology center in the southern part of the country. Depending on its success, Amazon hopes to offer the service across the country.
“Customers have long been telling us that they would like to order prepared meals on Amazon in addition to shopping for other basic necessities,” the company said in a statement. “This is especially relevant in these times as they stay safe at home. We also recognize that local businesses need all the help they can get.”
Amazon, which has gone from an online bookseller to a global giant with a hand in everything from shopping to cloud computing, will challenge local players Swiggy and Zomato, who currently dominate the food delivery market.
Both have been hit hard by the loss of business due to the pandemic.
The founder of Zomato Deepinder Goyal this month announced that the company, which is expanding outside India, would cut 13% of its workforce.
In a blog post, he said that up to 40% of restaurants could close in the next 6-12 months, a sign that many of the changes introduced by the pandemic would be permanent.
“We don’t expect to have enough work for all of our employees,” he said.