Amazon India is in talk with the prominent food order and delivery app Uber Eats for a potential buyout. Although, the talks are at the early stage and the two sides are keenly looking for an alliance in the business.
Amazon India is looking forward to expand its footprint in India through its business. The e-commerce giant is interested in entering the food delivery business in India to increase the list of services offered by the company, particularly under the prime membership plan.
At present, Zomato and Swiggy are the two leading food order and delivery platforms across India. These two platforms have a large clientele and Amazon is constantly looking to breach it, to add them on its prime membership programme.
As per the reports, prime membership plan has around 10 million users. Getting into the food delivery business will increase the number of app users. In addition to this, it will engage more users on daily basis as well as boost the number of transactions.
According to the sources, Uber Eats is valued around $300 million. Initially, Swiggy was in talks for the buyout with Uber Eats, but the two companies failed to fix the deal.
Uber Eats is constantly under pressure because of a tough challenge from its two rivals – Zomato and Swiggy. Zomato is trying to grip over the market through its Zomato Gold programme while Swiggy is trying to evolve itself as a big grocery delivery platform in near future.
It is estimated that Zomato delivers around 6,50,000 orders while Swiggy continues to remain on the top by delivering around 8,00,000 orders per day. On the other hand, Uber Eats could only manage to delivery around 1,75,000 orders per day.