Amazon is all to set to challenge the food delivery duopoly in India
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Food delivery services have seen a meteoric rise in demand amid the COVID-19 pandemic. In Indi, the market is largely dominated by two players, namely Swiggy and Zomato. The former is laser-focused on the food delivery segment, while the latter also doubles up as an Indian version of Yelp. The behemoths now have another contender, and unlike earlier contestants, this one is going to be a formidable opponent.
Amazon just announced that it will start a food delivery service in India. Dubbed as Amazon Food, it will allow users to order from local restaurants and cloud kitchens alike. The service will debut some localities in Bangalore with the PIN codes 560048, 560037, 560066, and 560103. A nationwide rollout is expected to follow suit soon. The move isn't surprising in the slightest, considering that Amazon Food was in the works since early 2017. If you happen to reside in the above localities, you can avail the service via the Amazon app. A standalone app isn't very far off, and will likely make its debut once the service is more widely available.
We should know more about Amazon Foods' specifics in the coming days. Amazon is the second company after Uber to challenge the Swiggy-Zomato duopoly. Uber's food delivery service -Uber Eats- had to shut shop due to low demand and got absorbed by Zomato later. It'll be interesting to see how Amazon Food differentiates itself from existing options. Unlike Uber, Amazon has a massive presence in the retail and logistics sphere. That, by itself, should be enough to give it a competitive edge over the Indian upstarts.