Amazon India to turn up heat on Zomato, Swiggy: Jeff Bezos’s company to foray into food delivery

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Published: July 30, 2019 12:25:03 PM

In a move that could raise competition for the current reigning giants such as Zomato, Swiggy and Uber Eats, Amazon India is planning to start its own online food delivery business.

Amazon Prime Day 2019, Amazon.com Inc. shoppers, amazon prime day sales,  Costco Wholesale Corp, Walmart Inc, EBay IncThe Jeff Bezos’ company is partnering with India based Catamaran. (Reuters)

Soon, you may start getting food delivered from Amazon as the company plans to take a slice of blossoming food delivery business in India, according to media reports. In a move that could raise competition for the current reigning giants such as Zomato, Swiggy and Uber Eats, Amazon India is planning to start its own online food delivery business in the country this year, Reuters reported citing unidentified sources. The Jeff Bezos’ company is partnering with India based Catamaran, which was founded by IT industrialist Narayana Murthy, and has already started roping in staff for its latest operation, the news agency cited sources as saying. The launch of e-commerce platform’s new service is expected ahead of the festive season, which kicks off in September.

Food delivery industry has been on a rising trend since 2011, globally, and the industry is expected to witness a steady 3.7% CAGR in 2020, according to a McKinsey report. “We believe [online] penetration rates will grow further as the market matures, eventually reaching 65 per cent per year,” the report added. 

Current leaders and their condition

Homegrown startups including Swiggy and Zomato are the market leaders currently, with both enjoying a significant chunk of the same. While Swiggy is backed by Naspers and Tencent, Zomato has Sequoia as an investor. Zomato has even notched its operations up to global landscape with expansion to countries such as UAE, Portugal, Australia, New Zealand, Lebanon, Turkey, the Philippines and Indonesia. On the other hand, Uber Eats has not been able to keep pace with the market and neither has Ola’s Foodpanda.

In India, Amazon currently caters to video and music streaming, online grocery delivery in some cities and also serves as an online e-commerce platform. Earlier, Amazon opened its food delivery operations in the United States but had to shut it down, bogged down by stiff competition. The Jeff Bezos’ company is also facing European Union antitrust investigation and is also under regulatory scrutiny in its home country which is investigating whether Amazon and other tech companies engage in anti-competitive practices and depriving users of benefits.

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