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Amazon To Launch Service In October 2019

Global ecommerce major Amazon is reportedly betting on competitive partner/service fees to make its space in the ’s food delivery market, which is majorly dominated by two Indian unicorns, and .

According to a media report which cited an Amazon executive, the company is asking the restaurants for a mere 6-7% commission on its food delivery services, as compared to the 15-17% commission charged by the existing players.

“The ecommerce behemoth is actively pitching to break exclusivity contracts restaurants have signed with food aggregators,” he reportedly added.

Amazon is said to be planning the launch of its food delivery vertical in October, starting with Bengaluru. The service might be launched by the name of ‘Amazon Restaurant’, accessible through Amazon’s grocery delivery app , the report noted.

Further, Amazon is said to soon start delivery of medicines and beauty products too, the report added.

Just yesterday, Amazon was said to be eyeing a partnership with Ola’s food delivery arm Foodpanda, which could be extended into an acquisition. Prior to this, the ecommerce company had also been reported to be in acquisition talks with .

As of April 2018, Amazon India had 67 fulfilment centres across 13 Indian states. On top of it, the company’s processing units are said to be spread across 19 Indian states and employs thousands of people, a testimony to the company’s vast delivery network across India.

Amazon has reported a 17% growth in net sales reaching $59.7 Bn in the first quarter of FY19, compared with $51 Bn in first quarter 2018. The company’s operating income increased to $4.4 Bn in theQ1 2019, compared with operating income of $1.9 Bn in Q1 2018.