Amazon enters food delivery business in India

Amazon Food has debuted in India as Amazon’s answer to Swiggy and Zomato. The new food delivery service by the US e-commerce giant has initially been started in Bengaluru to allow customers order prepared food from local restaurants and cloud kitchens.

Amazon has constructed its proprietary hygiene certification bar, which is important as people are avoiding food deliveries to a large extent due to the growing coronavirus outbreak in the country. The company has also claimed that it is “adhering to the highest standards of safety” to convince people to use its platform even during the pandemic.

An Amazon spokesperson said in a statement that the company has started its food delivery service on the basis of customer feedback. The new service is also aimed to help local businesses, especially restaurants that are facing hardships due to the national lockdown that has restricted restaurants from serving food at their locations.

“We are launching Amazon Food in select Bengaluru pin codes allowing customers to order from handpicked local restaurants and cloud kitchens that pass our high hygiene certification bar,” the spokesperson said in a statement.

“We are adhering to the highest standards of safety to ensure our customers remain safe while having a delightful experience.”

A report back in February mentioned that Amazon was planning to launch its food delivery service in the country. The coronavirus lockdown imposed by the government in March delayed the company’s plans.

Amazon’s entrance in the food delivery space in India will make the competition tougher for Swiggy and Zomato. The two companies were settling into a duopoly after the exit of Uber Eats in January, when Zomato acquired Uber’s food delivery business in the country. But both Swiggy and Zomato recently laid off some of their existing staff to overcome the revenue loss they faced due to the COVID-19 situation. With deep pocketed competition like Amazon coming into the space, the challenge will only increase for the homegrown delivery leaders.