Amazon is planning to rush into the proliferating online food delivery business in India this year, as per HT sources. The e-commerce giant is in early talks to buy Uber Eats India.
Amazon’s move could create disruption in an increasingly crowded market of online food delivery.
The e-commerce giant is working with local partner Catamaran, founded by IT industrialist Narayana Murthy, and has begun hiring staff for the new operation, the HT sources said.
Amazon is aiming to launch the new service delivering from restaurants ahead of India’s month-long festive season, which starts in September.
India’s rising middle class has driven the growth of the online food delivery service (mainly Zomoto, Swiggy and Uber eats) with research firm RedSeer Consulting saying order numbers rose 176% in 2018.
Profitability, however, remains difficult to find. The industry is dominated by local start-ups Swiggy, backed by Naspers and Tencent, and Zomato, which counts Sequoia as an investor.
Amazon India is in early talks to buy Uber Eats’ India unit and enter the food delivery business, reports Business Standard.
Uber Eats is eyeing a valuation of around $300 million, sources told the paper.
Amazon believes this could be a great add-on to its prime membership plan. It will also increase the use of its app.
By: Abhinav Ranjan, Editorial Desk, DKODING Media