Right before the festive season, Amazon has come up with a huge surprise. The global e-commerce behemoth is planning to launch its online food delivery services in India.
According to Reuters, Amazon is in talks with Uber to mark its debut in the online food delivery market in India. This seems to be a potential acquisition of Uber Eats by Amazon.
Uber Eats failed to achieve success similar to its arch-rival Swiggy. its attempts for a smooth-running business didn’t turn out very positive. The company is looking to offload its already struggling food delivery business amid the global restructuring. early this year, Uber was reportedly exploring the option to merge Uber Eats with Swiggy. The talks apparently didn’t materialise though. Hence, this might be the right time to let go before they get completely wiped out from the market.
On the other hand, Amazon is planning to merge Prime subscription with Uber Eats. How cool would that be if you get free food delivery with a Prime subscription?
So that’s the plan; there might be an increment of orders on Uber Eats. Moreover, the online food delivery business will make Amazon Prime will become more valuable to its millions of customers in India.
There has been no match to the Amazon Prime services so far in the market. So basically, the tech giant has a strategy that will not only hit Swiggy or Zomato but at the same time it’s a threat to Flipkart, Snapdeal and others as well.
The globally dominating e-commerce giant Amazon might not wait for a long time before launching its online food services in India. The online food delivery market in the country is currently dominated by local start-ups like Swiggy, and Zomato. The addition of Amazon will only raise the competition to a much higher level.
The reports claim that Amazon has already started working with a local partner, Catamaran, founded by torchbearer of Indian IT revolution Narayan Murthy. The firm has even started a hiring drive for its new venture.
Surprisingly, Amazon recently closed its online food services in the US facing extremely tough competition. There were no immediate comments for Catamaran. Amazon and Uber denied commenting on any rumour or buzzing.
The middle-class sector in India has been a fuel for online food delivery services. According to the research by RedSeer Consulting, the orders for online food delivery saw a significant rise of 176% in 2018.
Amid the rising competition in India, Walmart, Flipkart, and other big names have announced customer attracting plans recently. Despite having online food delivery business under its umbrella, Amazon will have to face a tough competition to grab a sizeable share of the Indian market.