Amazon Restaurants food-delivery service on the chopping block

12 Juin, 2019, 06:52 | Auteur: Auguste Feret
  • Bloomberg

The service packed up its bags in London in November, and Amazon confirmed to GeekWire it would end on June 24 in the US.

Amazon Restaurants was a tiny player in the USA, taking about 2% of the market, according to Jeremy Scott, a food and restaurant analyst at Mizuho.

Sorry to those who loved ordering food deliveries from Amazon, but those days are over. The service gave Prime members a way to get meals delivered to their door, using the Amazon Restaurants website or through the Prime Now shopping app.

Forbes called Uber Eats the company's "secret gold mine" and on the company's earnings call last month, Uber CEO Dara Khosrowshahi called food delivery "a huge category" and said it could eventually be larger than the ride-hailing business. The service launched in 2015 in Seattle before expanding to almost two dozen cities and delivered food to Prime members.

Uber Eats, for example, delivers Big Macs from McDonalds; DoorDash has a partnership with Wendy's; and Grubhub delivers Taco Bell chalupas and buckets of KFC's fried chicken. Shares of Grubhub soared 7 percent Tuesday. The company's grocery-delivery platform, AmazonFresh, is still going strong, and earlier this year, Amazon poured millions of dollars into a funding round for United Kingdom -based food-delivery site Deliveroo, which operates throughout Europe, Asia, and the Middle East.

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The unit was led at one point by the executive also in charge of Amazon's ticketing business, but was overseen later by an executive running its two-hour grocery delivery service, Prime Now, according to their LinkedIn profiles.

Consolidation in the delivery business has major implications for restaurants, giving more power to a handful of delivery players that are generating their own customer bases.

Amazon currently sells food in Britain through its Amazon Fresh, Amazon Pantry and Amazon Prime Now services and has a wholesale deal with supermarket Morrisons.

While the amount of investment has not been revealed, news that the world's biggest online retailer has a major stake in one of Europe's fastest growing tech companies has sent shockwaves through the sector.

More specifically, the days of Amazon Restaurants are over.

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