Amazon India is looking to foray into India’s online food ordering and delivery market. The US giant has been approaching restaurants and eateries in Bengaluru to signup on its platform and looks forward to launching by December this year.
The conglomerate is in attempts to attract the established players in the market like Zomato & Swiggy by proposing to contract the lowest cut. The Bengaluru-based restaurants told that Amazon’s rate cut is currently fixed at 6%. The company will be charging the restaurants 6-10% without food delivery and 18-22% with food delivery service. Swiggy’s and Zomato’s take rate is usually 18-25% in the region.
Amazon’s hazy delivery terms
Many restaurant owners have complained that despite the lower take rate, Amazon has not been obvious with its terms and conditions currently. One of the owners told that the Amazon salesperson even asked him to contribute to the cost of delivery separately. Swiggy and Zomato include it in their take rate.
Amazon’s sales teams have not been able to explain their T&Cs around promotions and discounts. Amazon’s dashboard for restaurants to track the order history and income is inadequate and is not up to standards of Swiggy and Zomato in this regard.
Amazon’s entry into the established online food ordering industry has come at a time when the restaurants are protesting giants food-delivery giants for pushing massive discounts. Its entry might shake up things in the food tech sector.