It has been recently known from trusted sources that
US business giants Uber Eats and Amazon are exploring the possibility of entering
into a strategic alliance for taking the booming food delivery business to the
next level in India. India’s ever-increasing middle-class section of people has
enabled the massive growth of the food delivery sector with order numbers
rising 176% in the year 2018 alone.
Further Amazon India is planning to buy out the
local unit of food delivery and ordering platform ‘Uber Eats’, in the near
future if all goes well according to their plan. The discussions are yet on the
nascent stages and only time will tell whether it will shape into an alliance
or a business acquisition soon.
Amazon is keen to deliver the benefits of food
delivery, especially to its prime users. With both Zomato and Swiggy operating
in full-fledge already in this business, Amazon plans to venture into this
arena by offering this service as an ‘add-on’ for existing subscribers of the Prime
membership plan. By doing so, the number of daily visitors to the e-commerce
platform will increase substantially which may convert into a probable
purchase. Amazon is expected to introduce this new facility during the upcoming
Great Indian Festive Season sales to boost its revenue.
The prime reason for these talks is Amazon’s
intention of retaining its current prime subscriber base through this dedicated
food delivery service. Amazon firmly believes that its customers will be more
attracted to availing their prime subscription, if this food delivery service
is added to their armour, even more than the existing grocery, shopping and
video streaming services. Anyways it is a win-win situation for Amazon, as
there is nothing to lose by including an additional feature, as it could add a new
dimension to its existing business.
Uber Technologies opened its food delivery service
way back in 2017 in the Indian market. But ever since its inception, it has
been struggling really hard to make it big owing to the tough competition from
the likes of Swiggy, Zomato, Dunzo, Food panda and many more. Uber has already
been in talks since it decided to call it a day soon since the market has
already been heavily dominated by Swiggy and Zomato by means of offering steal
deals, discount codes and free deliveries. Certainly, with this acquisition,
both Swiggy and Zomato will be given a run for their money and it will further
increase the competition levels and the customers will be treated with a host
of attractive new offers as well…
Uber Eats is currently considering a valuation of
$300 million for this big-scale buyout. Amazon is seen aggressively promoting
its prime subscription by reducing its membership fee from 999 Rupees to 499
Rupees especially for the Indian youth recently. With more than 10 million
active prime users, if Amazon India can tap this customer base and convert them
into a prospective business, through several thousands of food orders every
day, they can even make it bigger than the existing operators for sure sooner
than later…
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