Economy

Amazon to shut restaurant delivery service in U.S.

Amazon to shut restaurant delivery service in U.S.”

Amazon began dialing back Restaurants in November, when it shuttered the service in London - the only non-US location where it operated. That could give these companies more leverage in negotiations over rates or over restaurant chains' ability to charge higher prices on delivery orders.

The competition is fierce in the food delivery market, with companies such as Uber, Grubhub, and DoorDash seeing big growth in recent years. Amazon shut down the London branch of Restaurants late previous year, which could have been a sign of its impending USA demise, in retrospect.

The closure of the USA business, which was first reported by technology news site GeekWire, will happen on June 24th.

Although Amazon is dismantling this part of the business in the United States, the company still delivers food in other ways.

Amazon will shutter its Amazon Restaurants food delivery service in the USA later this month, GeekWire has learned.

"A small fraction of Amazon employees are affected by this decision, and many of those affected have already found new roles at Amazon", the company said in a statement. GeekWire reported on Tuesday that Amazon had shut down the in-house food delivery service about four years after its launch. Then, in May, Amazon made an investment in Deliveroo, a London-based delivery service that operates in 14 countries and territories around the world including Australia, France and Germany. It is also ending its Daily Dish program, which delivered lunch to workplaces.

But Scott thinks Amazon, which also owns grocery chain Whole Foods, isn't abandoning the food delivery business altogether.

As it is, restaurant companies are increasingly faced with the reality that delivery customers prefer their own services.

Uber Eats, which launched more than three years ago and is live in 500 cities globally, generated $1.46 billion in revenue last year, up from $587 million in 2017, and brought in $536 million during the first quarter of 2019.

Investors continue to place big bets on food delivery companies.



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