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Amazon India has launched its online food delivery service — Amazon Food in India, even as the top two players in the online food delivery market, Swiggy and Zomato have laid off hundreds of employees to survive the drastic fall in business due to the pandemic.
Amazon Food is listed on the Amazon app and is available in a few localities in Bengaluru.
“Customers have been telling us for some time that they would like to order prepared meals on Amazon in addition to shopping for all other essentials. This is particularly relevant in present times as they stay home safe,” said a spokesperson from Amazon India.
“We also recognise that local businesses need all the help they can get. We are launching Amazon Food in select Bengaluru pin codes allowing customers to order from hand picked local restaurants and cloud kitchens that pass our high hygiene certification bar. We are adhering to the highest standards of safety to ensure our customers remain safe, ” added the spokesperson.
It would be relevant to note that while every other company across the world is laying off employees, cutting or deferring salaries, globally Amazon has hired 1,75,000 associates during the Covid-19 pandemic. The e-commerce giant has increased its total investment in pay during Covid-19 to nearly $800 million for hourly employees and partners and expects to invest approximately $4 billion on Covid-related expenses to get products to customers and keeping employees safe.
In India alone where it has invested around $7 billion, Amazon has 2,000 open positions that it is actively hiring for, at present.
“This is a very deeply thought out strategy to dominate the world as far as retail paid transactions are concerned. Anything that a customer would want to pay for, whether it is a product or a service, Amazon would like to be there. Please remember that Jeff Bezos, founder and CEO of Amazon, is expected to become the world’s first trillionaire by 2026, according to a recent study. That’s no small feat,” said K Vaitheeswaran, co-founder AGAIN Drinks and e-commerce pioneer.
On Amazon’s late entry into the online food delivery market, Vaitheeswaran said “A large chunk of Swiggy and Zomato’s business comes from delivery of food sourced from third party restaurants. The only value add they bring to the customer is quick and efficient deliveries which Amazon has already perfected.”
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