Rumors are floating in that World’s biggest ecommerce company: Amazon wants to acquire Uber Eats India, the young and fast-growing food delivery app from Uber.
There has been no confirmation regarding this news from neither Amazon India or Uber Eats India, but as per some observers, this acquisition makes perfect sense.
Here are three reasons why:
Reason #1: Amazon Is Entering Into Food Delivery In India
Amazon India is keen to jump into the food delivery business in India, and challenge Swiggy and Zomato, and Uber Eats in this niche.
Hiring has already started in association with Catamaran Ventures, founded by Infosys co-founder Narayana Murthy, and their local partners.
As per reports, Amazon India will launch their food delivery business in the month of September to tap into the feastive season of Dussera and Diwali, and this can be their next big business venture.
Hence, it makes sense for Amazon to acquire one of the major players, and jump right into the middle of the action. An acquisition of Uber Eats India can be the best business strategy for Amazon India at this moment.
Note here, that Amazon has shut down their food delivery business in the US and the UK, but they are betting big on the Indian front.
Reason #2: Amazon India Wants To Ramp Up Their Prime Membership
In case Amazon India acquires Uber Eats India, it will be integrated with their Prime membership bouquet of services, and a food delivery app will be the right match to make the services even more stronger, and more appealing.
They charge Rs 999 for a year’s worth of Prime Membership, which includes free shipping, faster delivery, access to Prime Videos, Prime Music and more.
An unnamed source said, “People order almost daily from a Zomato or a Swiggy. These apps enjoy immense client stickability. Amazon believes this could be a great add-on to its membership plan,”
Now, the addition of food delivery via Uber Eats India will be the perfect icing on the cake for Amazon.
Reason #3: Uber Eats Is Gasping For Air
While Swiggy is the #1 player in the food delivery business with more than 800,000 orders per day, Zomato is at #2 with 650,000 orders per day.
Uber Eats is the newest entrant, with close to 200,000 orders, mainly coming in from the urban locations, and they are struggling hard to keep the momentum going, fighting against the biggies of the industry.
Swiggy and Zomato, both are Unicorns and have collectively amassed a big network of 150,000 restaurants and 200,000 delivery partners on their platform.
On the other hand Uber Eats India is now looking at a valuation of $300 million via Amazon India acquisition, and looking forward to getting the support of the biggest ecommerce portal on Earth to fight this battle.
Their earlier negotiations with Swiggy for a possible merger failed.
We will keep you updated, as more details come in.