Amazon calls time on Amazon Restaurants

The company calls it a day with its food delivery service in the face of fierce competition from Uber Eats, Grubhub and DoorDash

12Jun

Amazon is planning to close its Amazon Restaurants food delivery service in the US later this month, a report by GeekWire has revealed.

The service allowed Prime members to get meals delivered to their door and was first launched in Seattle in 2015, before expanding into 20 more US cities and London, UK. Amazon shut down its London operation in November 2018 and, according to GeekWire, will now do the same in all of its US locations.

The company will also close its workplace lunch delivery service Daily Dish.

"As of June 24th, we will discontinue the Amazon Restaurants business in the US," an Amazon spokesperson told GeekWire. "Many of the small number of employees affected by this decision have already found new roles at Amazon, and others will be provided personalized support to find a new role within or outside of the company."

Amazon faced fierce competition in the food delivery market, with incumbents Uber Eats, Grubhub and DoorDash combined holding more than 75% of the market share. Uber Eats in particular has been a breakout success, bringing in $239m in adjusted net revenue in 1Q19.

While Amazon is calling it a day with its own delivery service, it has not left the industry entirely, having led a $575m funding round for UK-based delivery unicorn Deliveroo.

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