Tech mogul and Amazon CEO Jeff Bezos have partnered up with Infosys co-founder NR Narayana Murthy for Amazon’s latest venture to foray into India’s online food delivery market according to media reports.
The e-commerce giant has entered into a joint venture Prione Business Services with the Insofys chief to take on food-tech giants Zomato and Swiggy in India.
The launch of the service would be offered as part of either Amazon’s Prime Now or Amazon Fresh platform. The platform is expected to launch as soon as March,
Amazon's food delivery platform is already open to its employees. Furthermore, the platform has also launched the pilots for its services across Bengaluru like- HSR, Bellandur, Haralur, Marathahalli and Whitefield, according to an
Several restaurants have signed contracts with Amazon to get listed on its delivery platform, with 10 to 15 per cent commission which is almost half of what Swiggy and Zomato charge, Business Today reported.
Big challenge
The foreign tech giant’s entry into India’s food delivery market could challenge the existing dominance of delivery giants Swiggy and Zomato. Zomato’s acquisition of UberEats in January in an all-stock transaction had already threatened a duopoly in the Indian food-tech market.
Furthermore, food delivery platform Swiggy is also growing rapidly having recently raised $113 million in an ongoing Series-I fund-raise led by existing investor Prosus N.V. (earlier called Naspers).
The Indian food-tech industry is expected to touch the $8-billion mark in the next two years with a CAGR of 25-30 per cent, according to a report by Google and Boston Consulting Group (BCG).
The US-based e-commerce giant amazon already has an expansive portfolio across multiple segments with services including Amazon Prime Video, Amazon Prime Now, Amazon Music and Amazon Fresh.