Amazon.com, Inc. (AMZN) Takes On GrubHub Inc (GRUB) With Food Delivery Service In Seattle


Confirming the earlier reports, Amazon.com, Inc. (NASDAQ:AMZN) now has restaurant delivery as an option for its Prime Now program. The program has a one-hour delivery schedule, and the consumers can make use of it. Initially, the company started the service in Seattle as it tries to compete with GrubHub Inc (NYSE:GRUB) and will expand to more neighborhoods. The online retailer is also not averse to entering new markets if its Prime Now is in operation there.

Participating Restaurants

Amazon.com, Inc. (NASDAQ:AMZN) indicated that only its Amazon Prime Now Members will be able to view the participating restaurants’ menu and place the orders in the app. The customers can track their food delivery order in real-time basis similar to the current order tracking facility in Prime Now. The largest online store operator indicated that food will be delivered within one hour or even less. However, there are no delivery fees or additional charges for its Amazon Prime members.

Currently, Prime Now members can avail free two-hour deliveries. However, a $7.99 fee is levied for one-hour deliveries. It appears that there are no fees in general for the food delivery service. Also, it is a fact that the company was not marking up the prices on top of the restaurant menu items. Both will be a competitive advantage for Amazon.com, Inc. (NASDAQ:AMZN).

Five Of 75 Restaurants In Seattle

The company developed the restaurant program under its Prime Now as an offshoot from its existing takeout, as well as, delivery services in Seattle through its local program. As a result, the service included 75 restaurants in Seattle though only five of them were ready to deliver the online retailer’s services.

Amazon.com, Inc. (NASDAQ:AMZN)’s Prime Now already has different delivery options. Though the online retailer has not provided any specific number of restaurants, eight restaurants were said to be listed currently. The company is also willing to provide ready-to-cook meals through its Amazon Fresh groceries delivery service. Amazon Prime Now was initiated to attract consumers for delivering the items. As part of it, the company is also offering streaming video service and now restaurant delivery.

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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