Amazon to push Prime Now for food delivery biz; may partner or acquire UberEats and foodpanda

Amazon India's aspiration to foray into food delivery business may get cemented through its Prime Now facility that offers two-hour express grocery delivery service.

The plausible reason behind leveraging the express delivery service for food delivery is low traction and small use cases in the grocery segment where it is compete with Bigbasket and Grofers.

The e-commerce giant is looking to go for a combo by using its Prime Now service for both - food and grocery delivery. Frequent usages of Amazon Pay for online food ordering is the biggest motivator for Amazon to get into the sector.

Since foodtech space is majorly captured by Zomato, Swiggy and third distant player UberEats, Amazon will have to chalk out a long term plan. The plan may include a strong partnership or acquisition.

The company was reportedly in talks with UberEats for acquisition. According to a TOI report, it's also evaluating merit in partnering or acquiring foodpanda. Both companies (foodpanda and UberEats) have been going through a tough time.

While Ola had downscaled foodpanda's delivery service through mass layoffs and restructuring, UberEats has also been eyeing to exit online food ordering business in India. It also held talks with Swiggy for acquisition. However, the deal seemed to have fallen through.

The food delivery service via Prime Now may be rolled out by the next year. The vertical will be led by Siddharth Nambiar, head of Prime Now in India and Sameer Khetarpal, director (category management), Amazon India.

Initially, Amazon was planning to start food delivery with brands like Rebel Foods, Eat.Fit, Domino's and its private brands. However, the current scenario indicates that partnership with foodpanda and UberEats will get preference over the formers.

It may be too early to assume the possible acquisition of UberEats and foodpanda by Amazon, but the e-commerce giant can turn out to be a dark horse in foodtech space.