Food delivery platform Swiggy starts alcohol home delivery service

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

Amazon.com Inc is rolling out services to deliver food in India, pitting it against established players Swiggy and Zomato in a market that has seen explosive growth in the last few years.

Amazon already has a strong presence in India with its e-commerce business and the food delivery services would only add an attractive option for the company that has been investing heavily in the country. Recently, the company launched a new "safety gear audit" feature within the Delivery Partner app which checks for "mask usage" to reinforce Swiggy's commitment towards ensuring the safety of consumers and delivery partners. In an email statement to YourStory, a spokesperson for Amazon said, "We are launching Amazon Food in select Bangalore pincodes, allowing customers to order from handpicked local restaurants and cloud kitchens that pass our high hygiene certification bar".

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.

Amazon Food will be launched on Amazon's shopping app itself, and in select locations as a pilot project. The service would be extended to other cities within a week.

Swiggy and Zomato, having raised more than $2 billion together, are still not profitable and are losing more than $15 million each month to acquire new customers and sustain existing ones.

Anand Lunia, a VC at India Quotient, said earlier this year that the food delivery firms have little choice but to keep subsidizing the cost of food items on their platform, as otherwise most of their customers can't afford them. Both the startups today are seeing fewer than 1 million orders on their respective platforms, down from almost 3 million they were each processing earlier this year. It also said about 61 per cent were reluctant to spend on eating out.

In a press statement, Swiggy claimed to have started the delivery of alcohol in Jharkhand's capital Ranchi already and said it would go live in other major cities soon.

To ensure safe delivery of alcohol and in compliance with applicable laws, Swiggy has introduced measures such as mandatory age verification and user authentication to complete deliveries.

Related:

Comments


Other news