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Amazon to launch food delivery service in India: reports

Amazon.com Inc is planning to launch a food delivery service in India, reports Reuters. The company is reportedly in talks for a possible buyout of local unit of Uber Eats because Amazon is interested in launching the food delivery service, so it can expand services under Prime memberships, according to a Business Standard report. Uber has tried to sell off its UberEats business in India to either Zomato and Swiggy, but has failed to get a buyer.

Amazon is reportedly working with local partner Catamaran, and has begun hiring staff for the new operation. It’s aiming to launch the service ahead of India’s festive season, which kicks off in September.

Amazon declined to comment. Uber said it doesn’t comment on rumors or speculation.

In June, Amazon shut down its food delivery service in the United States, giving into competition from other players, including UberEats. Called Amazon Restaurants, the service delivered meals to Prime members in 20 cities.

What competition is up to

The food delivery space in India is dominated by Swiggy, backed by Naspers and Tencent, and Zomato, which has Sequioa Capital as an investor.

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Ola Cabs’ food delivery service, Foodpanda, launched operations in 2017. Last month, the company began moving away from the marketplace deliveries and said it would focus on its own brand of kitchens.

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