Home Top Stories Amazon’s Food Delivery Service Launching in India soon.

Amazon’s Food Delivery Service Launching in India soon.


The food-delivery space in India is all but conquered by the likes of Zomato and Swiggy, but that is reportedly not going to stop Amazon from launching its very own food delivery service in the country. The report also claims that Amazon has outlined an initial $500 million for establishing itself in the food delivery market.

Amazon’s investment in India’s food-delivery business is apparently been taken about by compelling statistics about the management in India, with the Money Control statement declaring that the industry is predicted to grow to be deserving $17 billion by 2023, with a yearly germination rate of 16%. That’s a big market for Amazon to want a chunk out of, and with the kind of resources at Amazon’s disposal, and the fact that it’s one of India’s foremost e-commerce websites anyhow, obtaining customers and maintaining them sway not be a big obstacle for its food delivery service. Their aim is to obstruct the business and gain maximum market share. Rs 3500 crore war chest has been created to unleash offers and discounts as well.

A senior Amazon executive said, “We have disrupted every business we have entered, be it eCommerce, payments or entertainment,” Another strategy Amazon is planning to deploy is cloud kitchens that only offer food delivery and lack of dine-in facilities. This would be coupled with an aggressive hiring process for new delivery agents in order to reduce delivery times. Other than faster delivery, Amazon will allegedly offer reduced prices and cashback schemes to customers who make use of Amazon Pay wallet.

The food delivery market in India is quite lucrative and has even been forecast to be worth $17 billion by 2023. Swiggy is perhaps the largest player in this scene, and it has gone as far as to raise $1.3 billion in funding so far and has been valued at 3.3 billion as of December of 2018. On the other hand, Zomato is said to have raised $750 million and comes in at a valuation of $2 billion.

Getting food delivered on time is another challenge, and while Amazon is punctual at having goods to your doorstep in 24-48 hours, food delivery is a more sensitive matter where every minute counts. Furthermore, it has been noted that most food order peaks take place during lunch and dinner, which leads to delivery agents being underutilized during the rest of the day.

Amazon is said to have come up with some sort of predictive technology in order to tackle this uneven demand. In their downtime, food delivery agents could be used to deliver parcels instead, which is an advantage other food delivery agencies do not share.

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