Amazon India is reportedly set to start its food delivery service from next month and has started signing restaurants, promising to charge one-fourth the commissions charged by Zomato and Swiggy.
The service will reportedly be first offered in Bengaluru, followed by Mumbai and Delhi. Amazon is also reportedly in the final stages of acquiring Foodpanda's infrastructure from Ola. Amazon recently invested in food delivery startup Deliveroo, signalling that it hasn’t given up on the business.
For its food business, Amazon is expected to utilize the infrastructure and riders hired to deliver groceries and other items as part of its Prime Now service. The company is signing up restaurants at a commission of 5-6%, a fraction of the 20% or so charged by Swiggy and Zomato.
As the restaurants are in a clumsy situation due to the failure of negotiations with popular food platforms like Swiggy and Zomato even the NRAI interferes. At the time they are expecting a new platform to give them additional leverage, Amazon grabs the opportunity with both hands that pressurises Swiggy and Zomato even more.
It is known that restaurants have been at loggerheads with Zomato and Swiggy over-restrictive terms, high charges for listing on their platforms and consequently lower profits.