Amazon axes its takeaway delivery service in the US as competition from Uber Eats, Grubhub heats up

Amazon RestaurantsAmazon Restaurants.
  • Amazon is winding down its restaurant delivery service in the US just months after closing its UK arm. GeekWire was first to report the news.
  • The restaurant food delivery market has become increasingly crowded in the US where Uber Eats and GrubHub are dominating overall.
  • Last month, Amazon led a $US575 round of funding in UK delivery company Deliveroo.
  • Visit Business Insider’s homepage for more stories.

Amazon is retreating from the US restaurant delivery market.

According to GeekWire, it plans to close its Amazon Restaurants service at the end of this month just four years after it launched in Seattle. It is currently offered in over 20 major cities across the US.

A spokesperson for Amazon did not immediately respond to Business Insider’s request for comment.

The news comes just months after Amazon closed its UK restaurant delivery service. It has found other ways to keep one foot in the door over there, however; last month, it led a $US575 million round of funding into UK delivery giant Deliveroo.

Read more:
This is global and strategic: What Amazon’s mega investment in Deliveroo means for Uber and everyone else

Amazon has faced intense competition in the US restaurant food delivery market where, according to data from research firm Technomic, Uber Eats and GrubHub are dominating.

In its recent IPO filing, Uber highlighted the growth of its Uber Eats service over the past year. In 2018, Uber Eats’ revenue was $US1.5 billion, a 149% increase from the $US0.6 billion it pulled in in 2017.

But this is just a drop in the ocean, it says, estimating that it is currently only capturing 1% of the market worldwide.

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