Amazon India raises food delivery stakes with low restaurant commissions

Bengaluru/New Delhi: Amazon India, which is set to start its food delivery service next month, is promising restaurants its commissions will be a mere fourth of what rivals Swiggy and Zomato charge, a move set to spark a spell of intense competition in the business. “Since Amazon is going the marketplace route for now, it is acquiring the remainder of Foodpanda’s infrastructure which includes restaurant connections and integration, the menus, order processing methodology, delivery executives, etc.” For its food business, Amazon is expected to utilize the infrastructure and riders hired to deliver groceries and other items as part of its Prime Now service. “Amazon’s entry into the food aggregation space will give us a leverage on commissions,” said an e-commerce head at a large fast food chain that’s in talks with Amazon. These brands are now being made available on leading platforms and we continue to partner with more marketplaces, delivery services, as well as prominent food brands, to further expand our offerings.” While it is not entirely clear under what model Amazon will operate, restaurants Mint spoke to said the company is exploring both a facilitation model by directing orders throught its platform to the restaurant partner, as well as providing a delivery fleet.