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Amazon launches grocery delivery services in Bangalore through an app

Amazon Now

Amazon has launched grocery delivery services via an app called Amazon Now. The development was first reported by Mint. The company will now be competing against players such as PepperTap, Grofers and Spencer’s. Interestingly, online cab service Ola had started grocery delivery services in Bangalore too.

Rival ecommerce player Flipkart also launched grocery delivery services through an app called Flipkart Nearby in Bangalore. Flipkart only delivers in Koramangala, HSR Layout, BTM Layout, Ejipura, Jayanagar, JP Nagar, and Bellandur in Bangalore (basically the areas where every startup employee lives in).

Amazon seems to source the groceries from offline stores such as Big Bazaar, Nature’s Basket, Reliance Fresh and In and Out. The featured stores also shows Kirana Now and says “powered by Shopwel Supermarket”. Shopwel also features in Amazon.in’s top sellers.

Amazon started local grocery delivery in March 2015 through Kirana Now in Bangalore on a pilot basis. At the time, Amazon delivered orders via its own logistics unit Amazon Transportation Service Private Limited, delivery boys from kirana stores and third party vendors.

The service promises delivery within two hours (as does PepperTap). Orderable items include groceries like oil, flour, sugar, tea, juices, snacks, candies, sauces, jams, pickles, noodles along with household supplies and personal care items like shampoos, deos, detergents, diapers etc.

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Amazon Fresh in the US

Amazon already has a similar service in the US called AmazonFresh, where it was first launched in 2007, where pick up options were provided to its users through Amazon lockers available in public zones. There, it offered same day home delivery as well as next day delivery. While initially available only in Seattle, Washington, the service spread to other cities in 2013.

Other developments

– Earlier in January, Grofers shut down its services in 9 cities citing low acceptance. The company had expanded to these Tier II cities, including Ludhiana, Bhopal, Kochi, Coimbatore and Visakhapatnam in September 2015. Grofers will now operate in 17 cities.

– In December 2015, PepperTap, raised $4 million from Innoven Capital. Along with this, it also acquired Jiffstore, a Bangalore based hyperlocal grocery delivery service for an undisclosed amount. In September, PepperTap had raised $36 million.

– In November 2015, Indian Grahak, the Kolkata based online supermarket, acquired online hyper-local marketplace Dyscover in a cash and stock deal.

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– In September 2015, Delhi-based AUTOnCAB, a cab and auto booking service, acquired the Gurgaon-based online grocery delivery startup BigZop in a stock and cash deal.

– In August 2015, Bangalore-based online grocery store BigBasket raised $50 million in a round of funding. In June, it acquired the hyper local delivery startup Delyver in a cash and stock deal for an undisclosed amount.

– In June 2015, Paytm removed its grocery delivery app Paytm Zip from the Play Store, about 2 months after launching it. Paytm told MediaNama that they hadn’t launched the app officially in April. It was in beta and the app will be back on the Play Store with new updates, though they didn’t mention a specific date.

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