comscore Amazon to take on Swiggy and Zomato; war starts on Diwali
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Amazon all set to take on Swiggy and Zomato in India: Report

As per the report, the company is planning to launch its services at Diwali this year. It also outlined that Amazon will take on current heavy-weights of the space including Swiggy and Zomato.

  • Published: October 10, 2019 11:18 AM IST
E-commerce Amazon Flipkart

E-commerce giant Amazon is all set to enter the food delivery industry in the coming weeks. This is not new and we have seen similar reports in the past outlining this move. However, a new report shared some new information regarding this development. As per the report, the company is planning to launch its services at Diwali this year. It also outlined that Amazon will take on current heavy-weights of the space including Swiggy and Zomato. The company is likely to on the competition like it did in the c-commerce space with Flipkart. Also Read - Amazon Alexa now supports multi-lingual mode: All you need to know

Amazon food delivery service

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As per a report from Money Control, Amazon has prepared the initial amount of about $500 million. The company will use this amount to establish itself in the food delivery services industry to take on the competition. A senior executive issued a statement adding, We have disrupted every business we have entered as part of the report. Digging deeper, the report revealed the aspects that Amazon will focus on to establish itself. The company will focus on the restaurant commission by charging one-fourth of what the competition is charging. Also Read - Flipkart, Amazon India generate Rs 19,000 crore during 6 days festive season sale

In contrast, Swiggy and Zomato charge up to 20 percent . In addition, the company will offer the delivery of food for free for Amazon Prime members. Beyond this, the company will also establish cloud kitchens that only work for delivery-only food items. Amazon will also aggressively hire delivery agents to reduce the time it takes to deliver food. Other highlights of the service include lower prices and Amazon Pay wallet cashback.

The report also shared some impressive facts about the food delivery industry in India. For instance, the industry is set to be worth $17 billion by 2023 with an annual growth rate of 16 percent Another report highlighted that the industry currently processes about three million transactions per day. In addition, the report also noted that Amazon needs to be agile with delivery, with quality packing if it wants the service to succeed.

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  • Published Date: October 10, 2019 11:18 AM IST



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