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.
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.
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.