Amazon Enters Food Delivery Business In India, Starts With Bengaluru

Amazon is looking to diversify its revenue with entry into the food delivery business in India, competing with homegrown players like Swiggy and Zomato. The e-commerce giant will launch "Amazon Food" service at select pin codes of Bengaluru.

"We are launching Amazon Food in select Bangalore pin codes, allowing customers to order from handpicked local restaurants and cloud kitchens that pass our high hygiene certification bar," an Amazon India spokesperson told Moneycontrol.

The report further said that Amazon has been conducting tests and checks with restaurants for quite some time in Bengaluru, starting its pilot project in Whitefield

In the last 60 days, amid the nationwide lockdown, business has been challenging for large e-commerce players, which were forced to sell only essentials. Some launched deliveries of groceries and other essential items on their respective apps but grocery deliveries, though a high-volume business, has narrow margins.

Earlier this month, Amazon, in an earnings call, said its India operations were the worst hit by the COVID-19 outbreak, probably pushing it to diversify its revenue sources.