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Amazon trials online food delivery in India

May 22, 2020 11:28 am
Internet giant Amazon is entering the meal delivery business with a trial in four parts of India's Bengaluru. [Source: BBC]

Internet giant Amazon is entering the meal delivery business with a trial in four parts of India’s Bengaluru.

The move comes as pandemic lockdowns prompt a surge in online ordering in some places, such as the US.

However in India, the two big players in the market have seen significant declines in demand.

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Uber Eats retreated from the country last year, selling its business to local rival Zomato in exchange for a 10% stake in the Indian start-up.

Amazon has set ambitious plans for expansion in India, where it has invested some $6.5bn. Like rival Walmart, it sees significant growth potential in the fast-growing country.

It had reportedly planned to launch the food business before the lockdown, but delayed after lockdowns and restrictions on sales of non-essential items came into effect.

About 100 restaurants and kitchens are currently involved in the trial in Bengaluru, a tech hub in the southern part of the country. Depending on its success, Amazon hopes to offer the service across the country.

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