December 10, 2022


Amazon mentioned on Monday it has expanded its meals supply service, referred to as Amazon Meals, throughout 62 zip codes in Bangalore in what’s the first public replace since getting into the brand new class in India final Might.

The American e-commerce group mentioned Amazon Meals now reaches key localities in Bangalore corresponding to Whitefield, HSR, Sarjapur, Koramangala, Indiranagar, MG Street, Jayanagar, JP Nagar, Frazer City, Malleshwaram, Rajajinagar and Vijayanaga.

On the time of the launch in Might final yr, Amazon Meals was out there in simply 4 zip codes in Bangalore.

Whilst Amazon Meals stays restricted to 1 key market in India, the corporate is aggressively attempting to undercut the competitors — closely funded startups Zomato and Swiggy — within the metropolis.

Meals supply is free to Prime members, whereas others must pay a price of 19 Indian rupees (26 cents) — cheaper than charges levied by Swiggy and Zomato.

The corporate, which has dedicated to investing $6.5 billion in its India operations, mentioned it has amassed 2,500 eating places and cloud kitchens in Bangalore — additionally referred as Bengaluru. Amazon Meals prospects can get pleasure from “presents” from these eating places in addition to money again from Amazon, the corporate mentioned.

It, nevertheless, didn’t share why it has been uncharacteristically so sluggish with the growth of Amazon Meals within the nation.

(Properly, I imply, there’s a world pandemic — however Amazon additionally makes various what its workers say are “one-way door” and “two-way door” bets. Two-way door bets are those who the corporate has not totally dedicated to and is simply making an attempt to check the waters earlier than making a concrete resolution. Consider Amazon Prime as a one-way door wager. So it’s not clear from day 1 how dedicated Amazon is to any new service.)

“With the growth of Amazon Meals in Bengaluru, we proceed in our endeavor to supply unmatched comfort and worth whereas being part of their on a regular basis lives. Amazon Meals brings among the metropolis’s prime eating places together with nationwide retailers and in addition to native favorites that are common and observe strict supply and security protocols,” mentioned Sameer Khetarpal, director of Class Administration at Amazon India, in a press release.

Ant Monetary-backed Zomato and Prosus Ventures-backed Swiggy have established duopoly within the meals supply market in India, with analysts at Financial institution of America estimating their mixed market share to be over 90%. (Uber exited the Indian meals supply market early final yr after promoting its native meals enterprise to Zomato.)

The growth of Amazon Meals additionally comes at a time when Zomato, which in response to analysts leads the market, is making ready to file for an IPO.

India’s meals supply market is particularly powerful to crack due to native situations. Not like within the developed markets such because the U.S., the place the worth of every supply merchandise is about $33, in India, an analogous merchandise carries the worth tag of $4, in response to analysis corporations. Each Zomato and Swiggy have considerably improved their unit economics previously yr.


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