Monday, 19 August, 2019

Amazon Restaurants to End Delivery This Month

Bloomberg Bloomberg
Jean Garcia | 13 June, 2019, 04:54

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.

With the closure in the US, Amazon Restaurants is officially dead.

Amazon's food delivery service is up for the chopping block. Amazon will be ending its Amazon Restaurants service later this month, according to the site GeekWire.

Amazon.com Inc said on Tuesday it would end its USA restaurant food delivery service on June 24, giving in to intense competition from GrubHub Inc, DoorDash, Uber Technologies' Uber Eats services.

The closure of the US business, which was first reported by technology news site GeekWire, will happen on June 24th.

Amazon will also shut down Daily Dish, a workplace lunch delivery service that launched in 2016, on June 14.

Amazon's decision to end Amazon Restaurants removes what at one point held the promise of being a major player in the third-party restaurant delivery race.

Boris Johnson kicks off bid to be British prime minister
He added that "it is astonishing to think that anyone could suggest dispensing with that vital tool in the negotiation". MP's have rejected a cross-party motion to stop any future Prime Minister pushing through a no-deal Brexit .

Still, Amazon.com Inc. has shown interest in delivering meals to diners' doorsteps.

Deliveroo founder and CEO Will Shu said the investment would enable the group to further expand its reach, develop its technology and pursue innovations such as the launch of its own kitchens that can be rented to restaurants to meet demand.

It's unclear what, if any, moves are left in Amazon's restaurant delivery arsenal.

The competition is fierce in the food delivery market, with companies such as Uber, Grubhub, and DoorDash seeing big growth in recent years. The company still delivers groceries from Whole Foods via Prime Now in almost 100 US markets.

With Amazon out of the business, analysts said others could pick up its business. In May, the company took a stake in British online food delivery company Deliveroo, leading a $575 million fundraising. Shares of Grubhub Inc. soared 7% Tuesday, for instance.

Investors continue to place big bets on food delivery companies.

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