Companies

Amazon India expands Amazon Food delivery service to 62 pincodes in Bengaluru

Sangeetha Chengappa Bengaluru | Updated on March 08, 2021

Amazon India’s food delivery service which was launched in the midst of the pandemic in Bengaluru last May, is now available across 62 pincodes covering key localities.

Customers can order food from over 2,500 popular and hygiene certified restaurants and cloud kitchens around them with convenient doorstep delivery. Prime members get free delivery on all their orders, while other customers can pay a nominal delivery fee of ₹19 for their orders from Amazon Food.

As a limited period offer, packaging fees is waived for all customers, who can avail of offers from restaurants along with Amazon Pay cashbacks. Amazon Food is available for ordering from 7 am to 11 pm everyday.

Pandemic disruption

The online food delivery market de-grew from $4.2 billion in calendar year 2019 to $2.8 billion in 2020 because of the business disruption caused by the pandemic. With corporate offices set to open in phases, the market is estimated to grow to $5.3 billion in calendar year 2021, as per RedSeer Consulting.

Also read: E-tailers cart away more business amid Covid

Currently, Swiggy and Zomato dominate the online food delivery space with nearly 90 per cent market share. “In terms of volumes, with 1.8 – 2 million orders/per day in January 2021, the online food delivery market has seen a 75 per cent recovery compared to pre-Covid levels. However, GMV in January 2021 is back to pre-Covid levels led by a 40 per cent increase in average order value from $4 to $5.5 as a result of a sharp increase in group orders which made up for the loss of single-serve lunch orders from corporates that were working from home; and an increase in orders from smaller cities” said Rohan Agarwal, Director at RedSeer Consulting.

Sameer Khetarpal, Director – Category Management, Amazon India said “Customers trust Amazon for all their unique shopping needs across categories. Amazon Food is a service which we are offering to customers to provide them with very high quality and safe food; fresh hot food (meals) or cold food (icecreams); tamper-proof packaging and fast delivery.”

Published on March 08, 2021

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