Amazon’s move to enter food delivery is part of plan to build a wider product portfolio for its Prime service


BENGALURU: In the battle for consumer mind share in a highly competitive food delivery space dominated by established players Swiggy and Zomato, there is a new, albeit strong, entrant – Amazon.

With its already huge investments in a two-hour delivery supply chain for Amazon Now portfolio, the US ecommerce retailer is now piloting its much-anticipated project of delivering on-demand food to select localities in Bengaluru. This comes at a time when Swiggy and Zomato have cut discounts and tightened cost structures, and as ride hailing firm Uber backed out of the food delivery business in India altogether, having sold UberEats India to Zomato last month in return for a 10% stake, keeping a foot in the door nevertheless.

Amazon’s move to enter food delivery is part of a larger plan to build a comprehensive product portfolio – from grocery and food to electronics and home products – for its top customers who have availed of its Amazon Prime paid subscription service.

“Amazon does not care for timing… You can be last in a market and still win,” said an investor in the consumer internet space.

Of any consumer technology product in the country, food delivery gets maximum traction, followed by grocery, fast moving consumer goods and general ecommerce, the investor said.

“The intent is to capture all large categories where high-value consumers spend and make repeat purchases convenient, affordable and seamless, especially in the top cities,” a top executive at the firm told ET.