It’s been a successful business in terms of revenue and customer interest for the food delivery companies like Swiggy, Zomato and Uber Eats.
Now the e-commerce giants Amazon is also in the queue to make its debut in India to explore the food industry. However, Amazon had its delivery service in the USA but it got shut down on June 24th.
Amazon tough competition with other food delivery companies.
It’s now to have a try in India to gain momentum for the food delivery system. Furthermore, Amazon is intact to invest $500 Million ( Rs. 3000 Cr) in the food delivery venture.
Having the capacity for sustaining the loss of offering huge discounts at the start. Amazon can offer more discounts compared to Zomato and Swiggy to acquire customers.
However, it already has a huge customer base giving exposure to the people to order via Amazon.
Launch of the Amazon Food Delivery India
As per the exclusive reports from Moneycontrol, Amazon is complete in terms to launch the food delivery system in India this Diwali.
According to the Amazon Executive, “We have disrupted every business we have entered, be it e-commerce, payments or entertainment,”.
Amazon got its good reach and reputation in the business which has a stake and it is going to disrupt the food delivery business as well.
Rs. 3,500 will get invested in the major portion of reducing costs and offering huge discounts to acquire customers.
Process of Amazon Food delivery
According to some sources, Amazon will charge 25% from one order from the restaurant while other competitors are charging 20%.
However, Amazon has an advantage in terms of fast delivery and a huge customer base.
Some of the reports state Amazon is going to charge them only 1/4th of what other players are charging. In this case, Amazon will cross other competitors in an easy way.
Many experts are believing that Amazon will use its advanced predictive technology for delivering the food ordered by the customers.
Another smart strategy is that Amazon will only get tie-up with restaurants that lack in-dine experience and offer only for delivery.
Amazon will also offer discounts for the food orders on paying them using the Amazon Pay wallet. The e-commerce giant can use different offers strategies to attract a wide range of customers to its new venture.
Swiggy, Zomato, and Amazon: which can have the upper hand
No one expected that the food delivery service will be successful. Many analysts thought people will get real experience and feel dining in restaurants rather than getting it home.
But it wasn’t psychographics of the audience, they can prefer it at home if they are getting food in minutes with the same taste and flavor. Unless it is a five-star restaurant.
It is said that the food delivery market can be $17 Billion by 2023. At present Swiggy stands in place first to raise funding of $1.3 Billion and values at $3.3 Billion.
Zomato stands second and raised $750 million valued at $2 Billion.
The above startup involves major funding from other investors whereas Amazon is relying on its own funding and need to wait and see for its progress.