Ecommerce giant Amazon is reportedly in talks to acquire Uber Eats, which is the vertical of food delivery of ride-hailing company Uber.
Uber Technologies launched it’s very own food delivery service Uber Eats in the year 2017 but was unable to make a strong position in this sector.
With this acquisition, Zomato and Swiggy might get wiped out from the market because Amazon is ruling every sector now and if it expands into the food sector, then it might be an alarming sign for all its competitors.
Before the festive season in India kicks in Amazon might surprise the customers by launching its food delivery service wherein customers can order food and get takeaways from the restaurants tied up with it.
This move can definitely raise competition in the overcrowded market and can be a big threat for Indian startups like Swiggy and Zomato.
The e-commerce giant is more than keen to enter the food delivery business in India. Amazon is planning to include this food delivery app in its list of services it offers through its prime membership plan.
“People order almost daily from a Zomato or a Swiggy. These apps enjoy immense client stickability. Amazon believes this could be a great add-on to its membership plan,” a source told a leading news daily.
If reports are to be believed, then Amazon has already started hiring staff for this upcoming venture, and Catmamaran has been hailed in as the local partner for its food venture in India. This company was founded by NR Narayana Murthy, who is an Indian IIT leader. This anticipated project will start in September just when the festive season starts in India.
Right now, the food delivery sector in India is being ruled by the two major players, Swiggy and Zomato as they hold most of the market share in this segment. With the entry of Amazon in this sector, these leading players might get chalked out as Amazon is a big name, and people will definitely have trust in their products and offerings.
If Amazon markets this entire venture in the right way, then soon, it will rule this sector and will attract customers for the other services that it offers also.