Amazon will shut down its Amazon restaurants delivery service all across the US, as reported by the GeekWire. The company has combined with its closure last year in London which also means that Uber eats rival will officially be no more around. Amazon service was initially launched in Seattle back in 2015.
For the record, Uber eats has grown very well since its launch in 2015, plus the company is testing integrating it into its main ride-hailing app.
Amazon’s service was specifically designed to give its prime members some leverages, like a way to order meals, not just products and groceries through the e-commerce giant. But along this way the company has faced many competitions which include the Uber eats, DoorDash, Grubhub and Deliveroo, and many others. In some scenarios. Amazon Restuarant delivery service has given special offers in order to win and make a special place in the market.
“As of June 24th, we will be discontinuing the Amazon Restaurants business in the U.S.,” an Amazon spokesperson said. “A small fraction of Amazon employees are affected by this decision, and many of those affected have already found new roles at Amazon. Employees will be offered personalized support to find a new role within, or outside of, the company,” they added.
But in the meantime, Amazon has failed to establish themselves as a large market particularly both in restaurant delivery in both market share and consumer mindshare. It is not the first time people are going to order food and for that deciding the good delivery service, also, the logistics of delivering hot meals on time introduces a different set of concerns that go beyond Amazon’s core focus areas.
Despite the Restaurants delivery service closure, Amazon will also shut down lunch delivery service Daily Dish, according to the reports. Moreover, Amazon exit the delivery service business to focus on its grocery growing delivery service. Amazon is not withdrawing from the food delivery market completely. It will continue to sell its nonperishable food chain from its main online store, and it will deliver groceries from Whole Foods at some of the US locations.
It also continues to run AmazonFresh service, that costs an extra $14.99 per month on top of Prime. Amazon has tested making grocery deliveries directly to the trunks of Fresh customers’ cars. If we look closely the company takeout delivery aim now seems to be more focused outside of the Amazon brand after the company has recently invested in Deliveroo reports which they are currently attempting to buy the delivery company.