Jeff Bezos And Narayan Murthy To Enter In Indian Food Delivery Market

Amazon is all set to begin its food delivery business in India in March 2020 from Bengaluru as part of either Amazon's Prime Now or Amazon Fresh plan. With this, Amazon is going to take on established players like Swiggy and Zomato. Just as Zomato thought it had reduced competition from three players in the food delivery sector to a two players market after the acquisition of UberEats, there arises a piece of bad news.

The industry has a new entrant-the Amazon. Amazon has launched a pilot project for its food delivery company in Bengaluru after many rumors. The e-commerce company has already begun pilot testing its service in selected parts of Bengaluru and will roll out to other parts of the country by March 2020. Amazon isn't alone in it, unexpectedly. The executive of two restaurants confirmed that Prione Business Services has been signing contracts with brands to be listed on Amazon by offering 10%-15% commissions. The Prione Business Services is a joint venture between Infosys co-founder NR Narayana Murthy's Catamaran Ventures and Amazon India.

Amazon's entry into the food delivery market comes at a time when Zomato and Swiggy are starting to cut down on discounts. This push by Amazon to join the food supply market is seen as part of a broader plan to build a diverse product portfolio for its Amazon Prime paying delivery customers, ranging from groceries and food to electronics and home products. The nation's online food procurement market could be cheaper, too. The motive is that Jeff Bezos of Infosys's worldwide e-commerce big Amazon and Narayan Murthy will enter the online food supply business jointly.

The testing is currently being accomplished in Bengaluru as a pilot mission. After the acquisition of UberEats, Zomato's market share has grown to 55%, while Swiggy's market share is shut to 60% by income. Amazon's entry into the food delivery market would create new challenges for Prosus Ventures-backed Swiggy, and Zomato, a 10-year-old startup that acquired Uber's Eats business in India for about $180 million in January 2020.

The entry of Amazon into this room could completely alter the game. The world's leading behemoth player in e-commerce has a bigger war chest to contend with others. Jeff Bezos had revealed that during his recent visit to India, an extra $1 billion would be spent in India. This has brought Amazon's total investment into the Indian market to a whopping 6.5 billion dollars.