While most delivery companies are reporting losses and downsizing, Amazon has chosen this period to launch its food delivery service Amazon Food in Bengaluru.
The American company, known for taking calculated risks, hopes to give Swiggy and Zomato a run for their money, amid widespread market disruption in India due to the Covid-19 related lockdown and restrictions on restaurants.
It has reportedly invested more than $6.5 billion in India. On the other hand, Swiggy and Zomato had raised more than $2 billion together, but are still not profitable. The two well-established food delivery companies in the country, are losing more than $15 million each month in the process of acquiring new customers and sustain existing ones.
For the moment restaurants have been prohibited from opening up for customers. However, they are allowed (with strict precautions related to Covid-19 prevention), to deliver with the aid of delivery partners.
Amazon Food has begun its pilot program in Bengaluru to allow customers to order prepared food from local restaurants and cloud kitchens. Amazon has constructed its proprietary hygiene certification bar, which is important as people are avoiding food deliveries to a large extent due to the growing coronavirus outbreak in the country.
The company assures its customers that it is adhering to the highest standards of safety to convince people to use its platform even during the pandemic. Moreover, a spokesperson for the e-commerce giant revealed that this launch is a result of customer feedback it had received.
It maintains that the new delivery service will help revive local businesses and restaurants that are already bearing the brunt of lockdown due to Covid-19. The silver lining for these restaurants is that they are able to deliver food, although services within their premises are still not allowed.
The first four PIN codes in Bengaluru where this service will be rolled-out include - 560048, 560037, 560066, and 560103.
As per the company’s statement, customers from the select pin codes will be able to order from handpicked local restaurants and cloud kitchens that have passed its ‘high hygiene certification’. However, it is not clear what exactly are those standards of safety and on what basis the partner restaurants and cloud kitchens have been chosen.
