Online food delivery business has risen in the past few years. So far companies like Zomato, Swiggy, uber eats, food panda have dominated the food delivery space in India. These companies are very much famous not only in urban cities but have marked their presence in small towns too!
However, the most successful e-commerce company in the world, Amazon is all set to introduce its first-ever online food delivery business in India. Till now, Amazon was only offering products and online sales and services to the customers. According to the reports, Amazon founder and CEO Jeff Bezos have joined hands with Catamaran, a venture by Infosys co-founder N Narayamurthy, to connect the restaurant with the food delivery business. The two companies are jointly testing the service in Bengaluru as a pilot project.
Amazon is going to enter the food delivery business at a time when Swiggy and Zomato are struggling. Both companies are trying to reduce their expenses by lowering the discount given to customers and cost-cutting by firing employees. Taking the opportunity when other companies are struggling, Amazon can launch its services in March.
It’s noteworthy that during the visit to India, Jeff Bezos (CEO of Amazon) announced an investment of over $1 billion. This investment will help digitalize the small and medium enterprise sector in the country. Moreover, the online food market in the country is growing at a rapid rate of 25 to 30%. Food delivery market revenue in India was 55 thousand crores last year and is estimated to be 65 thousand crore rupees in 2020. Rapid digitization, online customers and increased expenses have given a new impetus to the market.
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Amazon has already marked its presence in the industry of grocery, electronics, items of clothing etc. Therefore the company can connect with a large number of customers and will not face any difficulty in delivering service to customers at a fast speed. Amazon can also offer substantial discounts to customers to attract and make them loyal customers. These steps are likely to give momentum to the new business. Well, it would be unusual to see the future of all the food delivery companies in India due to the upcoming fierce competition.