Amazon Food Delivery App To Take on Zomato, Swiggy With Lucrative Commissions to Lure Restaurants

Team Latestly

Bengaluru, August 20: E-commerce giant and US-based online retailer Amazon is proposing to offer lucrative commissions to attract restaurants its platform and break away exclusivity with players like Zomato and Swiggy. According to a report on ET Retail, Amazon's entry into the online food ordering business comes at a time when restaurants are protesting against food aggregators for offering deep discounts and eating into their profits. Zomato Calls for Truce with Restaurant Owners, Says Willing to Rectify Mistakes.

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The etailer's food delivery service is set to be launched from Bengaluru around Diwali, through its Prime Now delivery app, under the brand 'Amazon Restaurant', according to a source quoted in the report. The report further talks about how Amazon is working to break the exclusive contract which restaurants have with aggregators. Gurgaon Restaurants Opt-Out of Dining Apps Like Zomato, EazyDiner to De-addict Customers of Discounts; Mumbai, Kolkata and Other Cities to Follow.

More than 1,200 restaurants in several major Indian cities have reportedly de-listed themselves from the dine-in programmes of services like Zomato over the "unsustainable" deep discounts offered by the aggregators, saying the table reservation services were hurting their business model.

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Amid escalating tension between restaurants and aggregators, Zomato on Saturday said that it is open to making modifications to rectify "mistakes" and appealed to restaurant owners to stop the #LogOut campaign.

Restaurants have been facing a difficult situation due to high rentals and other reasons. To add to the woes, heavy discounts by the aggregators is also eating into the profit margins of the eateries.