Amazon Food expands food delivery service to India; sets rivalry with Zomato and Swiggy

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Faith Baltazar

10 Mar, 2021

Amazon Food expands food delivery service to India; sets rivalry with Zomato and Swiggy | BEAMSTART News

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With the ambition of dominating the world`s second-most populous country, Amazon has started broadening its horizons to conquer the food delivery space in India.

According to Amazon, their delivery service is now available in all of the 62 neighborhoods of Bengaluru where customers can order food from over 2,500 hygiene-accredited restaurants that offer 45 varieties of cuisine.

“Customers trust Amazon for all their unique shopping needs across categories. With the expansion of Amazon Food in Bengaluru, we continue in our endeavor to offer unmatched convenience and value while being a part of their everyday lives,” says Amazon India Director of Category Management, Sameer Khetarpal.

The expansion was originally planned to be launched at the end of 2019, but those plans were postponed due to lockdowns in India posed by the global pandemic.

Amazon Food Delivery App

As India's soon-to-be $12 billion online food distribution market, Amazon Food will contend against Alibaba-backed Zomato and Naspers-backed Swiggy.

The competitive landscape in the country changed when Ola, the country's largest mobility company, left the food delivery market, and Alibaba-backed competitor Zomato acquired UberEats, Uber's food delivery arm, for $350 million.

To contend with the existing leaders - Swiggy and Zomato, Amazon allegedly offered 10% to 15% commissions to its restaurant partners in order to gain a competitive advantage.

With a new fairly deep rival in the market, the two other companies will have to rely on discounts and other customer incentives to keep their consumer base strong.

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