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How Amazon Is Disrupting the Restaurant Food Delivery Industry

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Sep. 13 2016, Updated 12:04 p.m. ET

Why Amazon launched food delivery services in the UK

Amazon (AMZN) has launched restaurant food delivery services in the UK, which is concerning to Just Eat, Uber’s UberEats, and popular service Deliveroo. The online restaurant food delivery market is growing at a healthy rate in the UK and stood at 6.7 billion pounds in 2015.

Amazon’s food delivery service will only be available to Amazon Prime members in the UK in certain postcodes. The company initially has signed up about 148 restaurants to start the service. Although Amazon is offering free one-hour delivery for orders of 15 pounds or more with no additional mark-ups on restaurants’ prices, it faces one constraint. The service is only available to its Prime members, who pay a membership fee. However, other players are offering these services without any membership fees.

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Amazon to invest in Swiggy, a food delivery startup in India

Amazon’s India business is planning to invest in Swiggy, an online food delivery startup in India, according to an Economic Times report. The report suggested that Amazon had several rounds of discussions with the company in the past three months.

The online delivery market in India is still at a very nascent stage and is expected to grow at a rapid rate. Swiggy remains the market leader in this segment and fulfills about 40,000 orders a day.

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