Amazon is planning to launch online food delivery service in India to take on domestic food delivery services such as Swiggy and Zomato. The company is expected to launch its food delivery service in India ahead of the festive season which start in September this year.
According to a report by Reuters, the Seattle-based tech giant is working with Catamaran, a company founded by Infosys founder Narayana Murthy to launch its online food delivery service in the country. People close to the matter told the new agency that the company has begun hiring staff for the new operation.
A separate report by Business Standard indicates that the company is in the initial phase of talks to buy UberEats, a food delivery app by Uber Technologies that was launched in India back in 2017. The company, as per the report, is keen on entering food delivery business and add it to the list of services offered as a part of its Prime membership plan in the country.
The tech giant believes that an online food delivery service would enable people come to its platform more frequently than electronics, groceries or even fashion accessories. And so, addition of the food delivery service to the Prime membership plan, which has logged more than 10 million users, will not only boost the total number of users but also the daily transactions.
UberEats is expected to help Amazon achieve this. The food delivery service, which is valued at $300 million, was initially in talks with Swiggy over acquition, however, the talks fell through over issues regarding valuation, the publication reports. Now, the company is in talks with Amazon India over a possible acquisition.