Amazon’s Foray Into Food Delivery Poses A Risk To Zomato, Swiggy: Motilal Oswal  
Two Zomato food delivery couriers check their smartphones for customer order alerts in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Amazon’s Foray Into Food Delivery Poses A Risk To Zomato, Swiggy: Motilal Oswal  

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Amazon has started its much awaited food delivery service (Amazon Food) in Bengaluru, exactly a year after launching internally for employees.

While we see a marginal impact on Zomato, Swiggy’s duopoly from the much delayed and limited launch, Amazon Food will pose a risk to both players as it can shake up an established setup with a focus on profitability.

Our initial channel checks of restaurants in Bengaluru suggest Amazon is charging a take rate of ~10% on order value from restaurant partners.

This is less than half of what the duo (Zomato and Swiggy) charge from restaurants (22-25%), which has increased over the years.

Click on the attachment to read the full report:

Motilal Oswal InfoEdge Comany Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.