Amazon Restaurants will offer lower-cost food delivery services as an extension to Prime Now for groceries

We know Amazon will be releasing Prime Now from just every day groceries to even food delivery. They’ve already started signing in restaurants at competitive commissions. This also means Amazon Restaurants is giving established players like Zomato, Uber Eats, and Swiggy a run for their money. It is not confirmed yet that the service will be called Restaurants, I’m just assuming this is what Amazon uses in some markets. The brand has invested a lot in Deliveroo food delivery start-up from where all these predictions are rising. We thought others had saturated the market, but Amazon is known for smart pricing which means there is still hope.

Reports are hinting at a probable October market release of the service. Starting in Bengaluru, then in Delhi and Mumbai and reported by livemint. They also stated that FoodPanda’s delivery infra, London-based Deliveroo, has been almost acquired by Amazon. Allegedly Amazon will be charging a mere 6-7% commission from its partner restaurants as opposed to 15-20% charged by other players in the market. Recent news stories mentioned how these restaurants expressed their displeasure over higher commission rates. Amazon could be the answer with good news for both parties involved in this transaction, you the customer, and restaurant owner the vendor.

Amazon has already settled as a goto e-commerce brand for consumers. This new Amazon Restaurants vertical can further cement its reputation in the food delivery segment of the market. And then there is the reach. The rapid expansion of Amazon services across the country means it has more understanding of the Indian consumer and their needs.