Amazon India is likely to buy a local unit of food order and delivery platform Uber Eats. The negotiations between two sides are in the early stages while they both are looking to explore a strategic alliance.
The e-commerce company Amazon is keen to start the food delivery business in India and likely to include it in their list of services in the country. They are looking to add the food services in its Prime membership plan.
A senior Amazon India official said people order foods from food services like Zomato, Swiggy, Foodpanda on a daily basis. These food services enjoy massive client stackability. He added the e-commerce company intended to add-on food services in its membership plan.
Amazon believes that the food delivery business can easily attract customers to its prime applications more frequently than grocery, electronics or shopping. Reports say the e-commerce company has been able to log more than 10 million users on its prime membership plan. Furthermore, the food delivery services will enhance daily users to Amazon’s Prime app and will boost the number of transactions.
Amazon will surely face strong competition from rivals like Swiggy and Zomato in the Indian market.
According to the industry estimates, Swiggy had delivered around 800000 orders per day whereas Zomato had delivered 6,50,000 orders. Uber Eats had delivered between 1,50,000 and 2,00,000 per day.