BENGALURU (Reuters) – Amazon.com Inc., is planning a foray into the burgeoning online food delivery business in India this year, two sources aware of the development said, a move that would boost competition in an increasingly crowded market.
FILE PHOTO: The Amazon, the logo, the company’s logistics centre in Boves, France, 8th August, 2018. REUTERS/Pascal Rossignol/File Photo
The Seattle-based company is working together with a local partner, the Catamaran, set up by THE process of Narayana Murthy, started with the hiring of personnel for the new operation, the sources said, declining to be named because the plans are not yet made public.
Amazon has been focusing on the launch of the new service is to provide restaurants with a head start of India’s month-long festive season, which starts in September, which is one of the sources said.
India’s emerging middle class has led to the growth of the online food delivery sector, with research RedSeer Consulting this to find out the number rose to 176 percent in 2018.
The profitability, however, remains elusive. The industry is dominated by local start-ups, Swiggy, backed by Naspers and Tencent, and Zomato, which has Sequoia as an investor.
Uber Technologies launched its India-food-delivery-service in 2017, but it is not in a position to keep up with the local leaders.
The indian newspaper Business Standard on Monday, it was reported that Amazon was in talks to buy a Uber Diet. Reuters could not verify the news and be independent .
The Catamaran does not immediately respond to a request for comment. In the Amazon, and Uber said they will not comment on the rumors.
Uber’s rival Ola, also launched a food delivery service is and buy Foodpanda in 2017. The company is now moving away from the marketplace of the supplies and to focus on its own brand of cuisine.
Amazon, last month closed its food delivery business in the United States, in the face of cut-throat competition.
In India, the company is moving into the provision of restaurants and takeaway food outlets, it will help Amazon to attract customers to its other services , which is one of the sources said.
The company launched its first services in India in 2016, though, it offers services, such as video and music streaming, as well as grocery delivery in many cities and towns across the country.
Amazon has pitched itself into a battle for india’s market share is at Walmart Inc and Flipkart, with the two companies, the announcement of the plans in order to attract more customers in what is considered to be one of their most important markets.
Reporting by Nivedita Bhattacharjee in Bengaluru; Editing by Euan Rocha; Editing by David Goodman