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Tech & ScienceAmazon to shut down US restaurant delivery service

19:55  11 june  2019
19:55  11 june  2019 Source:   msn.com

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Amazon will shutter its Amazon Restaurants food delivery service in the U . S . later this month, GeekWire has learned. “As of June 24th, we will discontinue the Amazon Restaurants business in the US ,” an Amazon spokesperson Amazon will also shut down Daily Dish, a workplace lunch

Amazon also began a similar restaurant delivery service in the United Kingdom in 2016 that also shut down last year. The company is still in the restaurant - delivery business due to its investment in the British company Deliveroo, which announced in May it raised 5 million in a funding round, The

Amazon to shut down US restaurant delivery service © The Associated Press FILE - In this Feb. 14, 2019, file photo people stand in the lobby for Amazon offices in New York. Amazon is closing its U.S. restaurant delivery service, a 4-year-old business that failed to take off amid fierce competition from Uber Eats, Door Dash and others. The service, called Amazon Restaurants, offered delivery in more than 20 cities in the U.S. It was expanded into the United Kingdom, but Amazon shut it down late last year. (AP Photo/Mark Lennihan, File)

NEW YORK — Amazon said Tuesday that it is closing its U.S. restaurant delivery service, a 4-year-old business that failed to take off amid fierce competition from Uber Eats, DoorDash and others.

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The service , called Amazon Restaurants , offered delivery in more than 20 cities in the U . S . It expanded into the United Kingdom, but Amazon shut down the service in that country late last year. The closure of the U . S . business, which was first reported by technology news site GeekWire, will

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 However, Amazon still has ambitions in food delivery . In May, the company took a stake in British online food delivery company Deliveroo

The service, called Amazon Restaurants, offered delivery in more than 20 cities in the U.S. It expanded into the United Kingdom, but Amazon shut down the service in that country late last year. The closure of the U.S. business, which was first reported by technology news site GeekWire, will happen on June 24.

Still, Amazon.com Inc. has shown interest in delivering meals to diners' doorsteps. Last month, it bought a stake in British food delivery company Deliveroo, whose kangaroo logo is a common sight on bicycles and scooters in Britain.

Amazon Restaurants was a tiny player in the U.S., taking about 2% of the market, according to Jeremy Scott, a food and restaurant analyst at Mizuho.

He said Amazon didn't promote the delivery service enough and didn't have deals with big fast food chains. 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.

With Amazon out of the business, analysts said others could pick up its business. Shares of Grubhub Inc. soared 7% Tuesday.

But Scott thinks Amazon isn't abandoning the business altogether.

"The shuttering of the platform doesn't necessarily mean that Amazon won't eventually invest in the space," he said.

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