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Amazon Is Shutting Down Its Restaurants Delivery Service

Amazon Is Shutting Down Its Restaurants Delivery Service
According top reports, the service for delivery of its products to restaurants, known as Amazon Restaurants, would be closed down by the largest e-commerce platform of the world in the United States market by the end of the current month.
Online news website GeekWire in its report on this issue quoted an Amazon spokesperson saying in a statement the “as of June 24th, we will discontinue the Amazon Restaurants business in the US”.
Amazon had closed down a similar service of delivering products to restaurants in London was closed down last year. This means that at least in these two markets Amazon would no longer officially compete with Uber Eats.
Amazon had initially started its Amazon Restaurants service in Seattle back in 2015. Later on it expanded the operations of the service to as many as 20 cities in the US ads well as in London.
The “small number of employees affected by this decision have already found new roles at Amazon, and others will be provided personalized support to find a new role within, or outside of, the company,” the company said in its statement. Further. Along with Amazon Restaurants, Daily Dish – which delivers lunches to workplaces, would also be stopped by the company from June 14 of this year, the company has also confirmed.
According to analysts, this decision of Amazon to close down services of Amazon Restaurants would come as good news for its rival Uber. This ride hailing firm, which is now focused on development and expansion of its food delivery services Uber Eats in multiple markets in the world, has identified Amazon’s this delivery service as a competitor for its Uber Eats service while the documents that it provided during it’s the launch of its initial public offering (IPO) in May this year. Since its launch in 2015,
Uber has been able to inflict rapid expansion for Uber Eats and currently the company is trying to integrate this food delivery service with its core business of ride sharing and incorporating it in the main ride hailing app.
However, Amazon is not distancing itself completely from the food delivery market. The company is still engaged in selling nonperishable food through its main online market place while also delivering to customers, groceries that are ordered from Whole Foods in some locations and cities within the US.
The company will also continue to operate its AmazonFresh service for delivering fresh food products to customers which can be availed by customers at an additional cost $14.99 per month over and above the costs for subscriptions for its Prime service.
Earlier, Amazon has also conducted trials for delivering groceries directly to the trunk of cars of customers of Fresh. However, the latest move possibly indicates that the company’s current focus with respect to its takeout delivery business would be on brands outside of its core Amazon brand. For example, the company has made investments in Deliveroo even though there were reports that the attempts of Amazon to acquire the delivery company had not been successful.

Christopher J. Mitchell

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