Wednesday, 12 August, 2020

Amazon to shut down U.S. restaurant delivery service

Amazon to shut down U.S. restaurant delivery service Amazon to shut down U.S. restaurant delivery service
Ginger Lawrence | 12 June, 2019, 06:53

Amazon will shut down its Amazon Restaurants service in the USA later this month.

Sorry to those who loved ordering food deliveries from Amazon, but those days are over. Inc said on Tuesday it would end its US restaurant food delivery service on June 24, giving in to intense competition from GrubHub Inc, DoorDash, Uber Technologies' Uber Eats services.

More specifically, the days of Amazon Restaurants are over.

If this is the first you're hearing of Amazon Restaurants, it's also the last you're hearing of it, because the otherwise highly successful company is shutting down its food-delivery site after four years.

The official shutdown date is June 24, Amazon told GeekWire. The service launched in 2015 in Seattle before expanding to almost two dozen cities and delivered food to Prime members.

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Grubhub's stock got a boost today on news that Amazon is abandoning its restaurant-delivery business in the United States.

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

"A small fraction of Amazon employees are affected by this decision, and many of those affected have already found new roles at Amazon", the company said in a statement.

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. The Amazon-owned food delivery service focused on bringing lunch to the workplace will also close up shop on June 14. The company launched a takeout service in 2014 that let customers use the now-defunct Amazon Local app to order food for pick-up. Those three companies combined hold more than 75 percent of the US food delivery market share.

Grubhub's shares were up about 7 percent this morning, after the news was reported that Amazon will end delivery this month.