Amazon plans to buy Uber Eats India business as food delivery action hots up

Amazon India is planning to add the India business of Uber Eats to its acquisition cart. Amazon has been competing with top food delivery platforms like Swiggy and Zomato to step into the food delivery business.

According to Business Today, the US e-commerce platform is trying to get into the food delivery business seeing the rising trend of digital food catering services in India. The company also aims to attract more users for the prime membership through the acquisition.

The company reckons that it can pull in more traffic to its Prime app by acquiring the food delivery business. The addition of food delivery service to the Prime app will help Amazon add daily users and boost the per-day transactions through Amazon Pay app.

Uber Eats is considering a valuation of $300 million. There have been rumours that Swiggy is also in the fray for Uber Eats but it has reportedly run into issues of overvaluation and other concerns.

UberEats has been in stiff competition with Swiggy and Zomato and has been enjoying immense client loyalty. Swiggy has been trying to expand its business by stepping into the grocery delivery vertical whereas Zomato is expanding into dining services in exquisite restaurants, pubs and cafes.

The industry estimate reported by BT states that UberEats was lagging in its popularity as it served only about 2 lakh orders a day compared with about 8 lakh and 6.50 lakh orders delivered by Swiggy and Zomato, respectively.