New Delhi: Amazon India said Thursday it is launching its food delivery operations in select parts of Bangalore. It will see the e-commerce giant compete against major players like ‘Zomato’ and ‘Swiggy’ in India.
Amazon India has been testing the service for a few months now. The announcement comes at a time when Zomato and Swiggy have announced laying off over 1,600 employees. The job cuts have happened due to the COVID-19 pandemic.
“Customers have been telling us that they would like to order prepared meals on Amazon. This is in addition to shopping for all other essentials. This is particularly relevant in present times as they stay home safe. We also recognise that local businesses need all the help they can get,” an Amazon India spokesperson said Thursday.
The company however, did not elaborate further on its expansion plans in the Indian market. The spokesperson added that Amazon Food will be launched in select Bangalore pin codes. Amazon said that it will cover over 100 restaurants and eateries.
Amazon has been testing food delivery service in India among its employees for over six months. The company’s entry in the food delivery space could be a major challenge for Zomato and Swiggy. Both of them occupy a majority share of the food delivery market in the country. Earlier this year, Zomato had acquired the Indian business of ‘Uber Eats’ to strengthen its position in the Indian market.
However, the nationwide lockdown (which started March 25) has forced Zomato and Swiggy to restructure their business.
In a blogpost last week, Zomato Founder and CEO Deepinder Goyal had said that the company will reduce workforce by 13 per cent. The reduction, he said is due to the lockdown impact.
Swiggy had said the COVID-19 pandemic has ‘severely impacted’ its core food delivery business. Hence it will also be forced to lay off 25 per cent of its workforce.
PTI
