Amazon to Acquire Foodpanda to Strengthen Prime Now?

Must Read

Microsoft Warns Millions of Windows 10 Users, And It’s Scary!

Microsoft’s Windows 10 update worries seem to haven’t stopped even after they started to secretly offer Windows...

Microsoft Study Reveals Indians Have Become Less Digitally Civilised Than The Previous Years!

With the coming age of digital boom in India, more and more people have been gaining access...

SEO Secret: Meta Description Drives More Clicks Than Title, Reveals Study!

If you are a digital marketer in 2020 or someone who takes a keen interest in consumer...

The global e-commerce giant Amazon.com, Inc. (NASDAQ: AMZN) is coming up with a major food delivery business plan in India. Some close sources to the company reported that Amazon’s Prime Now might be a primary resource for its online food delivery plan.

Some media reports have suggested that Amazon might collaborate with Ola’s Foodpanda for its new food delivery venture. The reports also suggested that this collaboration talks could end up in Amazon complete acquiring Foodpanda.

Why is Amazon Acquiring Foodpanda?

The online food-delivery plans of Amazon can be a big threat to other online food services such as Swiggy and Zomato. What’s even more interesting is the transaction details of Amazon’s recently launched wallet, Amazon Pay on these services. A sizeable number of payment transactions on Swiggy and Zomato is through Amazon Pay, and that’s something Amazon might have taken a cue from. Now, Amazon aims to achieve similar success with its food delivery services.

Advertisements

Just last month we reported about a possible deal between Amazon and Uber Eats for its food delivery incursion. Uber Eats is the food arm of the dominant app-based ride-hailing company Uber.

According to the Times of India, Prime Now (previously known as Amazon Now) will be used as a delivery platform for the new food delivery services. This is to fasten the frequency of deliveries on the platform.

As of now, Prime Now is currently serving the customers of its grocery delivery service. The delivery team, however, has some serious concerns about the business model and believes that the delivery fleet is not getting utilised to its capacity. Hence, adding food delivery to Prime Now will allow the company to have efficient utilisation of its delivery fleet for express deliveries.

The retail giant is still looking to touch heights with its grocery delivery services – Amazon Pantry. Other groceries delivery services like BigBasket and Grofers are much ahead in the race of instant grocery deliveries. While Grofers claims to fulfil as much as 1.5.-1.8 million orders per month, the figure swells to 3 million in case of BigBasket.

Amazon is looking forward to launching food delivery services sometime during next year. A fixed date has not been announced yet. The head of Prime Now and Director of Amazon India (category management) are, however, putting these talks in the forefront.

Advertisements

The online food delivery market in India, however, is already very crowded with names like Swiggy and Zomato. It will be interesting to see how Amazon affects the market equations and handles the competition. The success of Amazon food delivery service is still elusive.

Amazon did quite well in FY Q2 2019, the total net sales increased an impressive 19.9% YoY, to $63.4 billion. The operating income of the company increased to $4.4 billion in the first quarter of 2019 as compared to $1.9 billion in 2018. While the net income of the company also increased to $2.6 billion in Q2 2019, from $2.5 billion in Q2 2018.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

LinkedIn Finally Rolls Out The Most Requested Feature By Users

Microsoft owned LinkedIn has recently been reported to have revamped its profile section with an amazing feature...

Google is Giving Microsoft a Taste of its Own Medicine

The latest version of the Microsoft Edge browser was launched about a month ago for Windows 10, Windows 8, Windows 8.1, and...

PhonePe Is Betting Big On The New Facility To Woo Smartphone Users And Merchants

The popular digital payments app PhonePe has recently been reported to launch a feature which is bound to solve their user’s cash...

Microsoft, Xbox, and One Small Mistake: Loss of $1 Billion

Microsoft Corporation (NASDAQ:MSFT) needs no introduction as it is one of the oldest players in tech space and dominated the industry undisputedly...

Facebook Without Mark Zuckerberg And Sheryl Sandberg?

Imagine Facebook without Mark Zuckerberg and Sheryl Sandberg, the current CEO and COO of the world's largest online social media network having...

Essential Email Marketing Features for eStore Owners That Generate Guaranteed ROI

Email marketing is essential and is a significant part of current digital strategies. Email marketing reigns supreme when you need to enhance...

In-Depth: Dprime

YouTube Should Have Bid Adieu To Dislike Button Much Earlier?

Online video sharing platform YouTube can be a ruthless place for content creators targeted by 'dislike mobs'. And the site owners totally understand that...

Facebook Has Pulled Off A Masterstroke By Integrating Its ‘Family Of Apps’?

It’s indeed hard to believe that ONE man sitting at Menlo Park, oversees how nearly a third of the world’s population interacts with each...

Facebook’s Crunch Conquest: By Relying Largely On The US Market, Is Facebook Running a Risk?

Two billion! That's Facebook, Inc. (NASDAQ: FB) for you - Right when you thought that this social-media giant has already connected the entire world, it's...

More Articles Like This