In a strong signal to leading players Zomato and Swiggy who have been severely hit by Covid-19, ecommerce giant Amazon with deep pockets on Thursday announced it has entered the vast online food delivery market in India, with introducing Amazon Food at select pin codes in Bengaluru.

Amazon Food

Amazon Food is currently allowing customers to order from hand-picked local restaurants and cloud kitchens that pass its “high hygiene certification bar”.

“Customers have been telling us for some time that they would like to order prepared meals on Amazon in addition to shopping for all other essentials,” an Amazon spokesperson said in a statement.

“This is particularly relevant in present times as they stay home safe. We also recognise that local businesses need all the help they can get,” the company spokesperson added.

The India market is piping hot as according to a recent study by business consultancy firm Market Research Future, the online food ordering market in India is likely to grow at over 16 per cent annually to touch $17.02 billion by 2023.

According to Prabhu Ram, Head-Industry Intelligence Group (IIG), CMR, unlike other markets, the food delivery market in India is tough to crack, especially from a profitability perspective.

“That said, in a post-virus era, the online food delivery market in India is positioned for growth. From the short- and long-term view, Amazon’s entry into the food delivery market is opportune,” Ram told IANS.

“At a time when Zomato and Swiggy have scaled down operations, and the consumer demand is muted, it remains to be seen how Amazon rides it out, and gains consumer acceptance in the midst of the crisis,” said Ram.

Source: Express Computer

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