Amazon's Prime Now, to be used for food delivery
Prime Now, Amazon’s fastest delivery module is likely to be used as a primary platform for its onset into food delivery business. The company has previously held several official conversations for partnership with Foodpanda, Ola’s food delivery unit. According to TOI report, Amazon has also approached Uber Eats for collaboration into its new venture.
The Same day delivery major Prime Now is known to act as an eminent vehicle for Amazon‘s plan. It is expected to capture the global market as it will focus on major use cases of food and grocery delivery.
Amazon had ample discussion on whether to build a food delivery module from scratch or collaborate with other food delivery majors. The company has now had preliminary talks with Uber and Ola for business execution.
The logistic team had questioned Amazon on the inefficient usage of the express delivery platform as Prime Now cannot be sustained just on grocery delivery. The team has realized that their fastest delivery module can be used for things much bigger and better.
Uber CEO, Dara Khosrowshahi said “India’s food delivery market is very competitive and it is at number three position. A deep-pocketed player like Amazon would have the muscle power to incentivise orders unlike Ola and Uber, who are reducing capital allocation for food business. Uber Eats is looking for a price tag of as much as $600 million for the India business, said one of the sources briefed on the matter.”
The report by Times of India stated that Siddarth Nambiar, head of Prime Now in India and Sameer Khetarpal, director, Amazon India, are spreading these talks for food delivery business. The launch of this service is expected to happen sometime in the next year.