Amazon to Venture into Cloud Kitchen Business

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Keeping pace with India’s rising cloud kitchen market, Amazon decided to venture into the market with its first cloud kitchen in Bengaluru to take on Zomato and Swiggy.

Reports about Amazon’s entry into the food delivery market in India surfaced earlier this year. According to reports, Amazon is in advanced discussions with restaurants to fix commission and delivery fees. The company will be charging a 6% to 10% commission when not fulfilling the food delivery and 18% to 22% if the restaurant uses Amazon’s delivery service.

The company is preparing to launch the service in December 2019. Previous reports suggested that Amazon’s food delivery platform, Prime Now, will be launching in October. According to a report by Inc42, the October launch might only be on a pilot basis, available for selected users. The report also suggests that the food delivery services might be a section on the Amazon India app.

Amazon will be running the service in a partnership with Prione Business Services, the local arm of VC firm Catamaran Venture.

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