Amazon Shutters Its Food Delivery Service

 Amazon Shutters Its Food Delivery Service

It was four years ago that Amazon began offering its U.S. restaurant delivery service, but it failed to garner any real attention with the competition from GrubHub, DoorDash, Uber Eats, etc. In a rare move for the popular Internet company, Amazon is shutting down the service.

Amazon Restaurants, which offered service in over 20 American cities and the U.K, began shutting the service down last year, starting with the U.K. area first. U.S. business closures will begin shuttering on June 24.

That doesn’t mean the company is getting out of the food delivery business altogether. In fact, Amazon.com, Inc. has pushed stake in Deliveroo, a British food delivery company readily identified by the kangaroo logo that’s commonly seen on scooters and bicycles.

Mizuho food and restaurant analyst Jeremy Scott said Amazon restaurants had just two percent of the food delivery service market in the U.S. He boiled down the problem with not enough promotion and no deals with the big-name fast food restaurants. For example, Uber Eats has an agreement with McDonald's, DoorDash has an agreement with Wendy’s and GrubHub partnered with KFC and Taco Bell.

According to analysts, with Amazon bowing out of the industry, it leaves others to pick up the pieces.

Scott doesn’t believe Amazon is forgetting the option of food delivery altogether, especially as it owns Whole Foods. He said the company might eventually come back and make a huge investment back in it.