Is Amazon really out of the restaurant delivery business for good?
Amazon Restaurants, the e-tail giant’s restaurant delivery service launched in 2015, will not deliver any more meals after June 24, GeekWire reports.
The service, which was expanded to more than 20 cities in the U.S. as well as London after its launch in Seattle in 2015, was intended to give Amazon Prime members a means to have meals delivered to their homes. Customers placed orders either through the Prime Now shopping app or on the Amazon Restaurants page.
While not reported at the time, it now appears that when Amazon ended deliveries in London last December, it was an indication of what was to come in the U.S. Amazon has also decided to end its Daily Dish lunch delivery service to office locations.
While Amazon appears to have thrown in the towel on figuring out the special sauce of restaurant deliveries, it may be too soon to count it out. The company led a $575 million funding round for Deliveroo, a former rival to Amazon Restaurants in the UK. The service, which delivers meals in over 200 cities outside the U.S., competes with Uber Eats, GrubHub and others operating in the same space. With the latest round of funding, Deliveroo has raised more than $1.5 billion since being founded six years ago.
- Amazon to shut down its Amazon Restaurants business in the U.S. – GeekWire
- Amazon Ends Restaurant Delivery in Face of Fierce Competition – The Wall Street Journal
- Amazon closes its restaurant delivery service in London – TechCrunch
- Amazon leads $575M funding round for Uber Eats competitor Deliveroo – GeekWire
- About Deliveroo – Deliveroo
DISCUSSION QUESTIONS: Do you think the latest news means that Amazon has abandoned restaurant deliveries altogether or does it have something else planned? What do you see as the primary challenges for companies operating in this space?