Prime Now to be Used by Amazon to Get into the Food and Grocery Delivery Space

Over the course of the past two decades, Amazon has grown into one of the world’s most innovative e-commerce companies, and it has done so by taking risks that many other firms might find unappealing. The company started off selling books online, but now it is known as the ‘everything store.’ After having been humbled in China, Amazon is leaving no stones unturned in their quest to become the biggest e-commerce operator in India. In a new development, it has emerged that the company is preparing to enter the food and grocery delivery space in India. Firms like BigBasket and Grofers are currently the leaders in that particular niche, and Amazon is exploring a range of options that could kick start its latest offering in India.

Prime Now, the platform that is meant for deliveries within two hours, is apparently going to be used by the company to facilitate food and grocery deliveries. However, in this regard, it is necessary to point out that the company is also looking at acquisitions in order to create a more streamlined delivery process. Amazon has spoken to cab-hailing company Ola with regards to an outright acquisition of its food delivery service Foodpanda. However, the initial deal could be a partnership, according to sources. Talks have also taken place with UberEats.

One of the sources who are aware of the developments spoke to a leading newspaper in India. He stated that the company had two options; either start a new operation from the group up or go for partnerships. Eventually, the powers that be chose to go with partnerships. The source added that many in the company believe that merely the use of Prime Now is not sustainable. He stated,

They have held talks with both Uber and Ola for it. Prime Now cannot be sustained just on the grocery delivery as the logistics team has questioned inefficient utilization of delivery fleet for the express delivery platform.

Amazon is already involved in a bruising battle with Walmart owned Flipkart in the e-commerce space, and the launch of the grocery delivery service could see it opening up another battle in a space that remains nascent in India. Needless to say, there is always the danger of Walmart deciding to go into grocery delivery through Flipkart, and if that happens, then things could get quite interesting.

Jodie Miller

Jodie Miller is experienced journalist. She holds double degree in journalism and communication. She joined our team as a content curator. She enjoys writing and curating contents related to finance and forex world.

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