Swiggy to begin home delivery of alcohol; starts with Ranchi

Swiggy to begin home delivery of alcohol; starts with Ranchi”

The customer is then verified at the time of delivery using an OTP. "This is particularly relevant in present times as they stay home safe", an Amazon spokesperson told TechCrunch.

The spokesperson added that Amazon Food will be launched in select Bengaluru pin codes.

The entry of Amazon into food delivery makes it a very interesting scenario as it has got the financial muscle and technology depth to battle with the existing players in the market.

Amazon is joining India's online food delivery market just as top local players Swiggy and Zomato reduce their workforce to steer through the coronavirus pandemic and months after Uber Eats' exit from the nation. It has also said it will scale down its cloud kitchen operations as well. These include outlets like Box8, Chai point, Chaayos, Faasos, Mad Over Donuts as well as restaurants from hotel chains like Radisson and Marriott (Shao, Melange and M Cafe among others).

During the lockdown, Amazon had been delivering essential items and groceries via its Prime Now, on-demand grocery delivery app, and Amazon Fresh app.

Experts, however, said Amazon's move into the food delivery space would help it target an even bigger share of the customer wallet if this becomes pan-Indian.

While we talk Swadeshi, global giant Amazon enters Indian food delivery market

The new service also comes as both Swiggy and Zomato face sharp declines in their core business, with restaurants remaining shut during India's two-month lockdown, forcing the companies to cut hundreds of jobs to save cash. Swiggy recently laid off 1,100 employees and announced a scaling down of adjacent businesses.

Amazon has already pumped in more than $6.5 billion in India and the vast online food landscape is a lucrative opportunity once the lockdown opens and people get to order food more.

Now that certain areas have been given a green chit for operating, food delivery companies have also started taking orders.

In the next three years, the food tech industry in India is going to grow from $4 billion to $15 billion.

Sources told Reuters past year that the Seattle-based company was planning to enter the highly competitive business in India, but the move was delayed as the company tried to sort out logistical issues. This has, of course, started with necessary approvals from the state government and will probably be done for other states in future as well.

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