Amazon Prime Will Soon Deliver Your Food; Possible Partnership With FoodPanda Or Uber Eats!
It is no secret that there has been a volatile battle going on between the top e-commerce retailers in India, for acquiring the top-most position. Amazon entered the domain of online grocery and has been burning $3-3.5 million in its online grocery business since January 2018.
Its Prime Now and Amazon Pantry: instant grocery delivery services, delivering food products, dairy products and perishable items in a limited time-window of 2 hours, is not being able to compete against the deeply rooted stances of online grocers like BigBasket and Grofers.
So the news here now is that Amazon has decided to serve as a platform providing not just grocery delivery but also food delivery via its Prime Now platform. For this, it has planned to partner with Ola’s FoodPanda or Uber’s Uber Eats. Lets learn more on this.
Amazon’s Motive behind Stepping into Food –Delivery
Amazon had entered the grocery-delivery market in 2018, in order to give a devastating blow to the online grocery platforms like BigBasket and Grofers. Unfortunately, due to mismanagement and inefficient utilization of delivery fleet for the express delivery platform, Amazon’s Prime Now found itself doing not as good as it had set out to.
These online grocery platforms are much ahead of Prime Now in the respective segment. In fact, Grofers individually clocks about 1.5-1.8 million orders per month.
With financial backup and deep-pockets like that of Amazon, it can afford to build mighty profit by stepping into both food and grocery delivery business at the same time.
Prior to this, Amazon had spent time contemplating whether to build its own food delivery, or to partner and invest with an already existing one. Deciding to go with its second option, Amazon is known to have had discussions with Ola’s food delivery unit Foodpanda as well as Uber’s Uber Eats, for a potential partnership.
Amazon plans to paint a bigger picture for itself through this initiative and is planning to launch this service from sometime next year, even though a final timeline has not been decided yet.
Amazon has decided to take such a step now when the Indian food delivery space has been expanding magnanimously and that too with equally thrashing competition, especially like Zomato and Swiggy.
As the news of Amazon’s talks of partnership with Uber and Ola has surfaced, certain other potential rumors have also come into light. It is being speculated that Amazon has had preliminary talks with Ola’s food delivery unit Foodpanda for partnership but it can also lead to an acquisition.
People also mentioned that Amazon had initially planned to start its own food delivery service, with brands like Faasos, Eat.Fit, Domino’s and its own private brands.
Coincidentally, amongst such dilemmas, it got to know that Foodpanda had been focusing on its private brand cloud kitchens that would be available across online food-tech platforms. As of now, it has 50 such kitchens around the country.
Another news that came up was that Amazon has a good number of users using its e-wallet Amazon Pay and are currently using it to pay on platforms like Swiggy. This led amazon to consider replicating the same for their own food delivery business.