Amazon gets into food delivery services in India - More pressure for Swiggy and Zomato?

After cementing a strong platform in the Indian e-commerce industry, global giant Amazon has announced that it has launched its new venture in one of India's highly competitive markets - food delivery services. 

The establishment of the food delivery services from Jeff Bezos's company would be expected to roll out the tough competition on what has now been prevailing as a duopoly market run largely by Swiggy and Zomato. The duo has attained sharp growth in the last few years and Amazon's hand is now been getting extended to test how successive the company could be on India's day-to-day market. 

Amazon's decision to get into the venture has come when Swiggy and Zomato have announced that they would begin home-delivering alcohol in some of the Indian cities from Thursday. These two companies have seen the plunging market in the wake of the lockdown as it has suspended the operations of most of the restaurants across the country. 

The companies that dominate the duopoly market have carried out job cuts and cost-cutting mechanisms to address the financial stress caused by the lockdown and the entry of Amazon into the market would further escalate the pressure for Swiggy and Zomato, which haven't found any tough competitors in the Indian food-delivery market. 

Amazon has a stronger presence in the Indian market and it has become the most preferable e-commerce platform by the customers and the food-delivery services would further take the company close to the people. India has been one of the vital investment destinations for Amazon and the company has been recording a stable growth in the country.

In 2016, Amazon has launched Prime Services in India through which it stays at most of the houses by offering music, video streaming, and grocery delivery in most of the Indian cities and the food delivery services would make the company the brand of 'all under one roof'. Speaking to Reuters, Amazon spokesperson said that the customers have been telling the company that they would like to order prepared meals on Amazon along with shopping the essentials. 

Named as "Amazon Food", the service has been launched in Bengaluru, in the selected areas of the city and the duopoly market has got an additional player that would make the race tougher. In January, Zomato has acquired Uber Eats following which Zomato and Swiggy have been running each other on the track of one of the highly competitive market.