Jeff Bezos, Narayana Murthy team up to challenge Zomato, Swiggy with this new venture
BusinessToday.In February 28, 2020
E-commerce giant Amazon India is all set to pilot its much-anticipated project of food-delivery services in Bengaluru soon. With this venture, Jeff Bezos-led Amazon will partner with Infosys co-founder Narayana Murthy, while challenging the already established players like Zomato and Swiggy. The US-based e-tailer has an expansive portfolio like Amazon Prime Video, Amazon Prime Now, Amazon Music and Amazon Fresh.
Amazon's food delivery platform is already open for its employees and pilots are underway across cities like-HSR, Bellandur, Haralur, Marathahalli and Whitefield, according to a report by The Economic Times.
Several restaurants have signed contracts with Prione Business Services to list on Amazon with 10 to 15 per cent commission -- half of what Swiggy and Zomato charge. Prione Business Services is a joint venture between Infosys co-founder NR Narayana Murthy's Catamaran Ventures and Amazon India.
Amazon's decision to enter the food delivery business will provide a comprehensive product portfolio for its consumers who have availed its Amazon Prime paid subscription service.
According to a report by Google and Boston Consulting Group (BCG), India's online food industry is set to become a $8 billion market by 2022, growing at a CAGR of 25-30 per cent. At present, Zomato and Swiggy clock around 2-2.5 million orders every day in India.
Also read: Zomato acquires Uber Eats for Rs 2,485 crore; over 100 employees face uncertainty