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Amazon to enter India’s food delivery business: Reports

Amazon India
Amazon India

Amazon is planning to enter India’s food delivery market in the coming weeks, TechCrunch reported. The service could be launched in March and would be available on Amazon’s Prime Now app, according an Economic Times report. The company has been testing the service with a few restaurant partners in Bengaluru in areas such as HSR, Bellandur, Haralur, Marathalli and Whitefield, and the platform is currently only available to its employees, according to ET. We have reached out to Amazon for comment.

Prione Business Services, a joint venture between Infosys co-founder NR Narayana Murthy’s Catamaran Ventures and Amazon India, has reportedly been signing contracts with restaurants to list on Amazon, offering 10-15% commissions — which is about half of what Swiggy and Zomato charge from their partner restaurants, per ET.  Raghu Lakkapragada, director of product management at Amazon, is reportedly heading the project.

This development comes weeks after Uber exited India’s food delivery market as Zomato acquired its food delivery business in India. However, both Swiggy and Zomato have been criticised by restaurants around the country for charging high commissions, preferential treatment and deep discounting, among other things.

Last month, we reported that the National Restaurant Association of India (NRAI) wants the Department for Promotion of Industry and Internal Trade (DPIIT) to clarify whether or not restaurant aggregators such as Zomato and Swiggy are e-commerce companies.

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