Amazon is planning to launch food delivery service in India before the festive season starts. There are reports that Amazon is in talks with Uber Eats for a potential deal.
Uber, in general has been trying to streamline operations and has recently laid off 400 people worldwide, so maybe Uber is looking for a sell out of Uber Eats in India).
So the timing is definitely right for Uber to let go of Uber Eats, before it becomes ‘totally irrelevant’ in the Indian market.
But Why is Amazon doing this?
For more GMV? No.
What can Amazon bring to the Uber Eats table?
Prime subscription – if you are able to get free deliveries with prime subscription, you might as well order from Uber Eats! So more stick with Prime subscription, which results in more purchase from Amazon.
That is, a threat to not just Zomato/Swiggy, but Flipkart/Snapdeal and everybody else.
The Prime subscription stack for Amazon is a killer, which nobody else has managed to copy.