Amazon is shuttering its Amazon Restaurant food delivery service in the US this month:
, respectively. So, while Amazon has immense resources at its disposal, it seems to have been unsuccessful at stealing away customers from existing players to bolster its market share.
Amazon Restaurants was only available to Prime members, capping its potential audience. While there arePrime members, cutting nonmembers out likely made it harder for the service to build share big enough to compete with the likes of Grubhub and DoorDash. On-demand local delivery is expensive, difficult to implement, and different from Amazon's established logistics expertise. To handle deliveries from restaurants, companies need to deploy workers to efficiently pick up orders from restaurants and bring them to specific customers' homes, making the exact routes and processes inconsistent and putting a focus on last-mile delivery.
Amazon's recent investment in Deliveroo suggests that Amazon may be interested in returning to the market with a new offering.The e-tailer
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