Amazon to launch online food delivery business in India by acquiring Indian arm of Uber eats. Amazon is in talks with Uber to mark its debut in the online food delivery market in India.
Amazon has a strong presence in India which covers all of 19,100 PIN codes in the country. However, the food delivery business has not taken off in a big way in India as it’s confined to nearly 4,000 PIN codes even after 10 years of its existence.
As per the report, Foodtech Market Updates, the foodtech industry has seen an overall GMV growth of close to 140% in 2018, with order volumes increasing by a whopping 176%.
Uber Eats was launched in India in 2017 with the initial launch in Mumbai. Later in 2019. The app allows users to schedule orders, curate restaurants, personalise taste preferences and dietary restrictions, along with the tracking the delivery on the app.
Amazon is looking to expand its range of services with this acquisition, to fight with the existing leaders including Swiggy and Zomato,and followed by Ola’s Foodpanda .
Sources said, Amazon has reported a 17% growth in net sales reaching $59.7 Bn in the first quarter of FY19, compared with $51 Bn in first quarter 2018. The company’s operating income increased to $4.4 Bn in theQ1 2019, compared with operating income of $1.9 Bn in Q1 2018. With this acquisition, Amazon might be looking to add food delivery to its slew of already existing services such as video and music streaming, voice assistant Alexa, sale and delivery of items such as groceries, books, clothing, and electronics among others.
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