US-based e-commerce giant Amazon India plans to venture into the online food delivery service in India after Uber Eats. The Seattle based company founded by IT industrialist Narayana Murthy has already started hiring staff for its new operation but hasn’t made the news public.
The E-commerce major Amazon India plans to launch their new project ahead of the festive season which begins in September (Dusherra and Diwali) to gain the maximum amount of profits. However, the MNC will face a huge competition from local startup Swiggy, Zomato, Uber Eats, and Food Panda.
In comparison to other local startups who have managed to keep customers loyal to their application, Uber Eats has been unable to match with the pace of other giants and hence Uber Eats and Amazon, the two big Multi-National companies, are in talks for a strategic alliance to capture the Indian food delivery sector. As per various researches, India’s rising middle class has driven the growth of the food delivery sector by 176% in 2018.
To compete with Uber Eats, rival Ola too launched its food delivery service bought by Food Panda in 2017. The company has moved away from Food delivery and is focusing on its own brand of kitchens. Moreover, Amazon closed its food delivery operation in the United States after facing stiff competition. After the massive success of Amazon Prime in India, the strategic alliance between Uber Eats and Amazon might turn out to be successful but these are still rumors and both the companies have not made anything official.
Amazon believes that the food delivery service will be a great business in India as it will have customer loyalty and sticklablity linking to its prime account where people except fashion, electronics or grocery can also order food. As per the market analysis, Amazon Prime has a membership of 10 million users.
As Amazon relies on Prime, Zomato relies on its Zomato Gold to boost its growth. As per industry estimates, Swiggy delivers 8,00,000 orders a day, Zoamto on the second position with 6,50,000 orders and Uber Eats lagged behind by a margin of four lakhs at 1,50,000 orders a day.