Restaurant Delivery Service Being Tested By Amazon.com, Inc. (AMZN)

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Amazon.com, Inc. (NASDAQ:AMZN) is testing a restaurant delivery service.

Home Ground

Amazon.com, Inc. (NASDAQ:AMZN) has begun testing on its home ground Seattle in Washington. Interestingly, the company recently added the location in Amazon Prime Now. However, the reports are not clear as to how many restaurants or which restaurants will participate in the testing. But the move appears to in respect of its new one-hour delivery service schedule.

The company’s move would suggest that it is trying to extend its lead in the online retail shopping, which is an ever-growing collection of real-world domains. This included household supply deliveries or grocery or referrals for home services, as well as, contractors. The retailer is already running its operations with a thin margin and how the new service will impact the margins can be seen in the coming quarters.

Direct Competition

The biggest online retailer’s current move will place it to compete directly with the companies such as Postmates, as well as, GrubHub Inc (NYSE:GRUB). These two companies deliver a variety of restaurant foods, be it lunch or dinner, straight to the consumers’ doorsteps. The companies allow its consumers to use their smartphones to place their orders in dozens of States.

There is no doubt that it is not an easy business with profit margins being thin and the tricky logistics needed. However, Amazon.com, Inc. (NASDAQ:AMZN)  has expertise in logistics, as well as, distribution.

Drivers Confirmed Handling Restaurant Deliveries

Reports suggested that a sign was spotted near Seattle where one of the distribution centers offering instructions on the ways to handle restaurant order pickups. Another report confirmed that a number of drivers have confirmed that they were handling the restaurant deliveries. One of the unnamed restaurants has reportedly said that it handled only one order till now. Also, the service is available to company employees only currently. That means the service can be extended to others too at some or the other point of time in the future.

Amazon.com, Inc. (NASDAQ:AMZN) is also initiating the delivery of wine, beer, and other booze to the residents of Seattle through its Amazon Prime Now.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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