The E- Commerce giant Amazon will be marking their entry in food delivery market in India. The E- Commerce giant has a widespread in India and is expected to take the market in month or two. Amazon will be facing tough competition from the local brands Zomato and Swiggy. The launch of the service will be offered by Amazon Prime Now or Amazon Fresh Platform. Uber which entered the food delivery market could not survive infront of the local giant and had to sell it to Zomato for $206 million.
Uber Eats sold their business to Zomato for 9.99% stake. Both the companies did not disclosed the financial terms of the deal but it is estimated to be around $350 million.
Zomato founded by Deepinder Goyal is an Indian restaurant aggregator and food distributing startup. Zomato was founded in 2008. Zomato has its headquarters in DLF Phase V, Gurugram, Haryana, India. As of now the company operates in more than 24 countries which includes Australia, Brazil, Canada, Chille, Czech, Indonasia, Ireland and many more. The company currently has more than 5000 plus employees and has more than 8 crore users.
Swiggy also does the same business but it was founded in 2014 by Nandan Reddy, Sriharsha Majety and Rahul Majaini. Swiggy has its headquarters in Bangaluru. It works across 300 cities in India.
Jeff Bezos who visited India few months before talk about his investment plan of $1 Billion in India. So it’s the first step of attaining it. The company has been testing it’s food distributing services with the selective restaurants in Bangalore from past few months. Earlier the company was planning to start it’s services in Diwali but due to some reasons, things did not turned out well and it was postponed. It will be a make or break situation for Amazon. In India the market is surely dominated by Swiggy and Zomato but with entry of Amazon and seeing the popularity of Amazon in India, it will surely hamper one of the two businesses.