The food-delivery space in India is all but conquered by the likes of Zomato and Swiggy, but that is reportedly not going to stop Amazon from launching its very own food delivery service in the country.
According to a new report from Money Control, the e-commerce giant is looking to launch food delivery services in India during the festival of Diwali, and will take on Swiggy and Zomato in the space. The report also claims that Amazon has outlined an initial $500 million for establishing itself in the food delivery market.
Competing against the likes of Swiggy and Zomato will not be an easy task, but Amazon reportedly has a few tricks up its sleeve — the report mentions that the company will charge restaurants one-fourth the commission that its competitors are charging. Moreover, the company will be offering free deliveries to Prime customers, which will just be another added advantage of using Amazon Prime apart from access to Prime Video, Prime Music, and free one-day delivery of Amazon packages.
Amazon’s interest in India’s food-delivery industry is probably been brought about by interesting statistics about the industry in India, with the Money Control report stating that the industry is projected to grow to be worth $17 billion by 2023, with an annual growth rate of 16%. That’s a big market for Amazon to want a chunk out of, and with the kind of resources at Amazon’s disposal, and the fact that it’s one of India’s leading e-commerce websites anyway, acquiring customers and retaining them might not be a big problem for its food delivery service.
Obviously, we can’t predict what Amazon’s food delivery service will look like and whether or not it will disrupt the industry in India, but this report should be ringing some alarm bells over at the Swiggy and Zomato offices. As for us consumers, more choices are a great thing, so let’s see what Amazon is cooking up for its customers.