Amazon Food delivery app could pose serious threat to Zomato, Swiggy

Reportedly, Amazon India may be gearing up to launch its own online food delivery division to compete with Swiggy, Zomato and UberEats in Indian market. According to reports, Amazon India has a capital of Rs 3500 crores reserved for its online food delivery business, which will reportedly be used for coupons and discounts. It seems like Amazon has plans to disrupt food retail business and gain maximum market share in segment. It does help that Amazon India alrey has its existing workforce of delivery partners in place and chances are that Amazon would put its current workforce of delivery partners to use in order to speed up delivery process and stay ahe of competition.

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Amazon is expanding its India operations by pumping in over Rs 4,400 crore in its various units in India, including marketplace and food retail. This way, Amazon is stepping up more ammunition to compete against Flipkart. Amazon h registered cumulative losses of over Rs 7,000 crore across various units in 2018-19. However, fresh funding is indicative of Amazon's confidence in Indian market. As per regulatory filings 'Amazon Corporate Holdings' and 'Amazon.com.incs Ltd' are pumping in Rs 3,400 crore in Amazon Seller Services (marketplace unit), Rs 900 crore in Amazon Pay (India) (payments arm) and Rs 172.5 crore in Amazon Retail India (food retail business).

"...consent of board be and is hereby accorded for allotment of 3,400,000,000 (340 crores) equity shares of Rs 10 each aggregating to Rs 3,400 crore to existing shareholder on right basis...," filing, sourced by Paper.vc said.

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resolution was passed by board of directors of Amazon Seller Services on October 14, 2019, it ded. Separate resolutions for allotment of 17.25 crore equity shares of Amazon Retail India (aggregating to Rs 172.5 crore), and 90 crore equity shares of Amazon Pay - India amounting Rs 900 crore to Amazon Corporate Holdings and Amazon.com.incs Ltd were approved by respective boards on October 17, 2019. An Amazon India spokesperson declined to comment on fund infusion. Amazon founder Jeff Bezos h committed investment worth USD 5 billion in Indian market in 2016.

Amazon and Flipkart have been pumping in millions of dollars across various operations like marketplace, infrastructure and supply chain manment as well as marketing and promotion as y look to strengn ir position in Indian e-commerce market. Estimates suggest that e-commerce accounts for under 5 per cent of India's retail market but is expected to grow manifold as more and more Indians come to participate in online shopping.

(With ncy inputs)