Amazon's Plans for taking over Uber Eats




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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