Amazon Delivery

Amazon Eyes Food Delivery Service In London

Amazon has already dominated the online shopping and clothing markets, and now, it is setting its sights on the food delivery industry, something that startups, including Uber, have been eyeing.

According to a media report, which cited several unnamed technology and food industry sources, Amazon is mulling launching its Amazon Restaurants service in London. The service, which is already available in San Francisco, San Diego, Chicago, Seattle, Los Angeles, Baltimore, Austin and Portland, lets customers use the Prime Now app to order food that will be delivered within one hour. Amazon partnered with local restaurants to bring the service, mainly to city dwellers. If it launches in the U.K.’s London, it will mark the first expansion of Amazon Restaurants internationally.

Amazon is reportedly reaching out to popular restaurants in London who may already list on competing delivery services, like Deliveroo and UberEATS. It’s not clear if Amazon is having success in getting the restaurants on board as partners. The report noted that one restaurant source said Amazon is requesting a commission of 26 percent, which isn’t out of the realm of possibility but is not as low as competitors charge if the restaurant agrees to exclusive listing.

Last summer, Uber got more serious with its food delivery service, UberEATS, upgrading the platform to include its own button on Uber. It’s now displayed next to the car icon. The update was interpreted back then to mean Uber is taking its delivery service seriously and wants users to easily find it. Startup companies that offer food delivery services via an app are growing in popularity as consumers fall in love with the ease of placing an order on their phone. The venture capital industry has been responding, pouring money into the space for the last couple of years. According to CB Insights, on-demand, food-focused technology startup companies raised $5.7 billion in 2015, up 152 percent from 2014.

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