Amazon Food Adds ZIP Codes, Expands Delivery Service Within Bengaluru

Amazon India has expanded its food delivery service, Amazon Food, across Bengaluru, according to a report from Mint.

The move will help expand the company to 62 ZIP codes and will consist of over 2,500 restaurants and cloud kitchens, the report stated.

Amazon’s move into food delivery came last May as the pandemic was already going on, pitting it against rivals like Zomato and Swiggy. There were only pilots available in Bengaluru until now, according to the report.

Amazon Food plans to cater to important city locales, such as Whitefield, HSR, Sarjapur, Koramangala, Indiranagar, MG Road, Jayanagar, JP Nagar, Frazer Town, Malleshwaram and Rajaji Nagar, the report stated. In addition, there will be another 48 cuisines and dishes to its assortments, including Indian, Chinese, Italian, biryani and burgers.

Amazon has poured millions of dollars into its India unit, PYMNTS reported in October, with the eCommerce giant putting in $152 million into the segment of its business, coming as the company prepared for a busy festival season. That came after another $300 million from June last year.

The infusion of cash gave the company ammunition to fight other titans in the area, including Walmart-owned Flipkart and Reliance Industries, which is owned by billionaire Mukesh Ambani. Both of these rivals were also raising money at the same time.

Swiggy and Zomato saw a record number of orders last year amid the pandemic and particularly during New Year’s as people began celebrating in their houses to comply with the pandemic-related rules, Mint reported. Zomato hit a record of 4,254 orders per minute, and its gross merchandise value (GMV) increased 60 percent from the prior year.

Swiggy, meanwhile, hit 5,500 orders per minute on Dec. 31 and doubled its new user base, according to Mint.

Both companies have ramped up competition with more funding, with Zomato raising another $250 million ahead of its forthcoming initial public offering (IPO), Mint reported. The company’s value is now sitting at $5.4 billion after its previous few funding rounds. Swiggy is also attempting to raise more to keep up the fight.