The hyper-competetive Food tech and delivery business is not easy to operate. A few recent shutdowns include Meal-delivery startup Munchery, Canadian FoodTech startup Food Starter, Indie Plate among others. Now, the tech giant Amazon is also discovering how tough the business segment is.
According to GeekWire, Amazon will shutter its Amazon Restaurants food delivery service in the U.S. later this month.
Amazon sent an email on June 12th to Amazon Flex delivery drivers notifying them of the shutdown: “Amazon Restaurants will be closing later this month. After June 24th, you will no longer see offers for Restaurants deliveries,” the email reads. “You will continue to see blocks for all the other programs that Amazon Flex Delivery Partners support: Amazon.com, Prime Now, AmazonFresh, and Whole Foods.”
Amazon Restaurants first launched in Seattle back in 2015. Amazon expanded the program across more than 20 U.S. cities and later in London. The service gave Prime members a way to get meals delivered to their door, using the Amazon Restaurants website or through the Prime Now shopping app.
The service was available to Amazon prime members, and according to Amazon,
You could search for “restaurants that deliver to me” or you could save time and go to www.amazon.com/restaurants and enter your ZIP Code–it’s the easy way to get the delicious food you’re craving delivered to your door. You’ll find all your favorite cuisines, including American, Chinese, Thai, Japanese, Greek, Vietnamese, Italian, Indian, Middle Eastern, and Mediterranean, plus vegan and vegetarian choices.
There are favorite national restaurants—like P.F. Chang’s, Denny’s, Five Guys, Applebee’s, Buca di Beppo, and Red Robin—plus much-loved neighborhood spots. You’ll find the same food—and the same prices—as you would in the restaurant, without the long lines to get in. Once you order a few times, you’ll notice your go-to orders are easily accessible for re-ordering.
According to geekwire, the competition is fierce in the food delivery market, with companies such as Uber, Grubhub, and DoorDash seeing big growth in recent years. Those three companies combined hold more than 75 percent of the U.S. food delivery market share.
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