Amazon Enters Food Delivery Market

Amazon enters the food delivery market through its new project, Amazon Restaurants.

Amazon Inc. has brought in another benefit for its Prime subscribers. Reports suggest that the company will start delivering food items from a number of restaurants in Chicago through its loyalty program ‘Prime Now’. The firm is trying to make a positive impact in a much increasingly crowding food delivery industry. It was going to take this step eventually but the news of UberEats expanding forced to take this step sooner.

Amazon announced on Thursday that it is all set to launch ‘Amazon Restaurants’, which will offer food delivery service from almost 80 restaurants in Chicago. The online retailer said that it would keep on adding restaurants on daily basis in order to expand its portfolio. The company officials stated, “Customers who dish out $99 for an Amazon Prime subscription — which includes free two-hour delivery and $7.99 one-hour delivery on certain retail items — can receive free delivery on restaurant orders for a limited time”.

There is no doubt in the fact that Amazon is making its way in one of the most occupied and packed market and it will surely be difficult to settle down easily. One advantage for the company is its Amazon Prime Now members who can avail free delivery service on the listed restaurants of Chicago.

The delivery service market already has a few big names that include Door Dash, GrubHub, Caviar, and Seamless. Apart from this, Uber is set to expand its business and announced to introduce a proper three course meal delivery option for its customers in the foreseeable future, according to reports by Wall Street Journal. The general manager of Amazon Restaurants, Gus Lopez, said, “We want people to try the service, but we may down the road introduce a delivery fee.”

Uber is expected to introduce its services in 10 cities, including Chicago. The ride-sharing business is all set to introduce its standalone app and a new food delivery venture named UberEats, which will allow the customers to order full meals from full menus of the listed restaurants in its portfolio.

The president of the food industry consultancy ‘Technomic’, Darren Tristano, said “There’s very likely going to be one winner, one who’s second and likely trailing by a distance, and a number of regional players that either get consolidated in or eventually determine they don’t have a profitable business model.”

Amazon will soon add more restaurants and offer services in more cities eventually. It should also observe its competitor to stay ahead in the game.