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


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