Last November, Amazon closed their restaurant delivery business in London and now they are also shutting down their service in the United States. This service was launched in the year 2015 and has been running since then. This feature was an added perk for all the Amazon prime users. Prime users had another way of ordering meals along with products and groceries.
The service has been under constant competition with Uber Eats, Grubhub, DoorDash, and Deliveroo. Amazon tried to put discounts so that they can win market shares, but nothing worked out for them. The company failed miserably to establish itself as a significant player in this industry. The main problem is that Amazon is not the first name that comes to people’s mind when they think of ordering food online. The main focus of Amazon was to deliver hot meals to people during lunch and dinner.
According to GeekWire, Amazon will close all its lunch delivery workplace and Daily Dish very soon. The only reason Amazon decided to step down from this industry is that they now want to focus more on the grocery business. TechCrunch was earlier tipped off by a source from Amazon. Amazon made the announcement of closure on the 24th of June 2019. Amazon also mentioned that there will be layoffs because of business closure.
“As of June 24th, we will be discontinuing the Amazon Restaurants business in the U.S.,” an Amazon spokesperson said. “A small fraction of Amazon employees are affected by this decision, and many of those affected have already found new roles at Amazon. Employees will be offered personalized support to find a new role within, or outside of, the company.”
The decision of Amazon leaving the food delivery industry has made a positive impact on their rival GrubHub with the jump in stocks of about 5 percent.