Amazon to shut down its Amazon Restaurants business in the U.S.

Cornelia Mascio
Giugno 12, 2019

Amazon Restaurants is shutting down in the United States and will cease operations on June 24, Amazon announced Tuesday.

But Amazon ended the program in London this past November and will say goodbye to its US service later this month.

GeekWire reports that the USA division of Amazon Restaurants, which allowed Prime users to order from nearby restaurants, as well as Amazon's lunch-delivery site Daily Dish will both shutter on June 24. The company is getting out of the restaurant food delivery business. The service gave Prime members a way to get meals delivered to their door, using the Amazon Restaurants website or through the Prime Now shopping app. In May, the company took a stake in British online food delivery company Deliveroo, leading a $575 million fundraising.

Uber Eats, for example, delivers Big Macs from McDonalds; DoorDash has a partnership with Wendy's; and Grubhub delivers Taco Bell chalupas and buckets of KFC's fried chicken.

Although Amazon is dismantling this part of the business in the U.S., the company still delivers food in other ways.

Grubhub's shares were up about 7 percent this morning, after the news was reported that Amazon will end delivery this month. The company still delivers groceries from Whole Foods via Prime Now in almost 100 USA markets. "The shuttering of the platform doesn't necessarily mean that Amazon won't eventually invest in the space", he said.

Consolidation in the delivery business has major implications for restaurants, giving more power to a handful of delivery players that are generating their own customer bases.

Deliveroo founder and CEO Will Shu said the investment would enable the group to further expand its reach, develop its technology and pursue innovations such as the launch of its own kitchens that can be rented to restaurants to meet demand.

With the closure in the US, Amazon Restaurants is officially dead.

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