Tuesday, 02 June, 2020

Swiggy, Zomato Start Doorstep Delivery of Alcohol in Ranchi Amid Coronavirus Pandemic

Amazon taps into food delivery services in India While we talk Swadeshi, global giant Amazon enters Indian food delivery market
Ginger Lawrence | 22 May, 2020, 15:26

Bhubaneswar: The Odisha government is planning to engage food aggregators like Swiggy and Zomato to start home delivery of alcohol during COVID-19 lockdown in the state, said sources in the Excise department on Thursday.

The entry of Amazon into food delivery in India expands its portfolio of services which ranges from the horizontal marketplace, digital payment, media, and now, food delivery. The company originally planned to launch the service in India previous year, which it then moved to March but pushed it further amid the nationwide stay-at-home order the Indian government issued in late March. While Amazon Food has been made available in Bangalore initially, Amazon hasn't commented when and if it will launch in other parts of the country.

Customers will be required to provide the delivery executive an OTP delivered to them via the app at the time of delivery. ".allowing customers to order from handpicked local restaurants and cloud kitchens that pass our high hygiene certification bar". The service will be extended to other major cities in the state within a week. "We are adhering to the highest standards of safety to ensure our customers remain safe while having a delightful experience".

Experts, however, said Amazon's move into the food delivery space would help it target an even bigger share of the customer wallet if this becomes pan-Indian.

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Zomato in January acquired Uber's Food Delivery Business in India in an all-stock deal of almost Rs 2,500 crore, with Uber having 9.99 per cent stake in the Deepinder Goyal-led food delivery platform.

Figuring out a path to profitability is especially challenging in India, as unlike in the developed markets such as the US, where the value of each delivery item is about $33, in India, a similar item carries the price tag of $4, according to estimates by Bangalore-based research firm RedSeer. Once they have a token, they can place an order through Whatsapp or by calling up the store. It has also said it will scale down its cloud kitchen operations as well.

In a recent press statement, Swiggy announced the alcohol delivery service, noting that people will be able to use a new "Wine Shops" option in its app to order alcohol from nearby liquor stores.

During the lockdown, Amazon had been delivering essential items and groceries via its Prime Now, on-demand grocery delivery app, and Amazon Fresh app.