Sending a strong signal to Zomato and Swiggy who have been severely hit by Covid-19, ecommerce giant Amazon with deep pockets has entered the vast online food delivery market in India, with launching Amazon Food at select pin codes in Bengaluru. Currently, Amazon Food is allowing customers to order from handpicked local restaurants and cloud kitchens that pass its “high hygiene certification bar,” the company said on Thursday.
“Customers have been telling us for some time that they would like to order prepared meals on Amazon in addition to shopping for all other essentials. This is particularly relevant in present times as they stay home safe. We also recognise that local businesses need all the help they can get,” an Amazon spokesperson said in a statement (via Techcrunch).
The India market is piping hot as according to a recent study by business consultancy firm Market Research Future, the online food ordering market in India is likely to grow at over 16 per cent annually to touch $17.02 billion by 2023.
The e-commerce giant has already pumped in more than $6.5 billion in India and the vast online food landscape is a lucrative opportunity once the lockdown opens and people get to order food more.
Reports surfaced last year amid Zomato-Swiggy merger talks that Amazon was gearing up to launch its own online food delivery division to compete with food delivery apps in the Indian market. The retail behemoth already has a robust existing workforce in the country that can be utilized along with hiring more delivery partners to beat the competition.
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“We are launching Amazon Food in select Bangalore pin codes allowing customers to order from handpicked local restaurants and cloud kitchens that pass our high hygiene certification bar. We are adhering to the highest standards of safety to ensure our customers remain safe while having a delightful experience,” said the Amazon spokesperson.
Written with agency inputs