Amazon to Acquire Foodpanda to Strengthen Prime Now?

Must Read

Apple Inc. (AAPL) And Samsung Group (005930) Combined Smartphone Market Share Shrunk To Below 50% In Q1 2014: Huawei and Lenovo Rising Fast!

Apple Inc. (NASDAQ:AAPL) and  Samsung Electronics Co. Ltd. (KRX:005930) are the undisputed heavyweights of the smartphone world. Together, both brands accounted for 50%...

Sales Of iPhone XS, XS Max In India: Buyers Giving The Cold Shoulder, But It’s Not Time For Apple To Panic Just Yet

Apple Inc. (NASDAQ:AAPL) recently launched their new flagship lineup of iPhone for 2018, and they were met with equal...

Apple is Being Evil For 1.5 Billion iPhone, iPad Users Worldwide

Last year when Apple Inc. (NASDAQ:AAPL) was accused of recording everything that iPhone users were talking through...

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

Uber India Layoffs 25% Workforce Citing Tough Market Conditions

After laying off thousands of employees in the US, Uber is scaling down its operations in India...

Apple is Being Evil For 1.5 Billion iPhone, iPad Users Worldwide

Last year when Apple Inc. (NASDAQ:AAPL) was accused of recording everything that iPhone users were talking through Siri, the company was quick...

Is Bill Gates Developing Covid-19 Vaccine To Track Billions Of Users Worldwide?

Bill Gates is once again at the centre stage of controversy related to novel Coronavirus. Battling falsehood and paranoid...

Darkest Before Dawn: Can India Survive Its Worst Ever Recession?

Bolt your doors, batter down your hatches, brace yourselves. Recession is about to make landfall. According to Goldman Sachs, a...

Crisis Of Trust: The Glue Between Brands, Customers And Employees!

The COVID-19 crisis, which shows no sign of stopping any time soon, has left no life untouched in terms of impact. It...

WeWork Valuation: $2.9 Billion, Way Below Than Estimated $47 Billion 6 Month Ago

If you are thinking it is some kind of clickbait, you are highly mistaken. The debate on the valuation of WeWork once...

In-Depth: Dprime

Fantastic 4: Four Day Work Week A Flashpoint Of Innovation?

It has been an idea that has been mooted by many, perhaps also somewhat sceptically. From being a dark horse to becoming...

TikTok Is Facing The Wrath Of People Who Love It The Most

Ever since the popular social media app TikTok entered India, it has been growing very aggressively in terms of users. Within a...

Facebook Shops: Looking Beyond Ad Dollars!

Amid this global pandemic, when companies are struggling to find new verticals to pivot towards in order to maintain their revenue and...

More Articles Like This