Amazon to shut restaurant delivery service in US

Wed, 2019-06-12 01:12

NEW YORK: Inc. said on Tuesday it would end its US
restaurant food delivery service on June 24, giving in to intense
competition from GrubHub Inc, DoorDash, Uber Technologies’ Uber
Eats services.
“A small fraction of Amazon employees are affected by this
decision, and many of those affected have already found new roles
at Amazon,” the company said in a statement. “Employees will be
offered personalized support to find a new role within, or outside
of, the company.”
Amazon Restaurants was launched in 2015 in Seattle and was designed
to give Prime members a way to order meals, apart from products and
groceries, through the online retailer. The service was expanded to
more than 20 US cities, and then to London where the program ended
in November.
The unit was led at one point by the executive also in charge of
Amazon’s ticketing business, but was overseen later by an
executive running its two-hour grocery delivery service, Prime Now,
according to their LinkedIn profiles.
However, Amazon still has ambitions in food delivery. In May, the
company took a stake in British online food delivery company
Deliveroo, leading a $575 million fundraising.
Shares of Amazon edged up 0.4%, while GrubHub rose 8.6%. Geekwire
first reported the news.

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Source: FS – All-News-Economy
Amazon to shut restaurant delivery service in US