Amazon for restaurants
Amazon Restaurants, the pending subject of the e-commerce giant
Nobody says that it is easy to compete in the restaurant marketing world, an specially in the scenario of the home delivery of food in the United Kingdom, Deliveroo has his fief and Uber Eats, no matter how hard they work from the parent company, he cannot take away his leadership position. After two years fighting to gain a foothold, Amazon Restaurants has stopped working in the country a few months ago. In the US, has also closed its service since last June because of the great competition it faces.
The numbers offered by Technomic, a Chicago-based American company that runs analysis and consulting work for the catering industry, speak for themselves: while Amazon Restaurants was available in 25 US cities. In the US, Eat Streets serves 250 locations and GrubHub does the same in 1600. What maked Amazon Restaurant, not such a good idea to improve your local SEO for restaurants, if you were not in one of that 25 cities, that left more room for the Amazon competition to gained field.
Amazon Restaurants does not go well even when compared to the economic returns of the different rivals in the sector. The five food distribution companies with the highest income are, in descending order, GrubHub, Uber Eats, DoorDash, Postmates, and Caviar.
Moreover, compared to 2017, all these companies have experienced an increase of around 50% in their income; consequence of the increase of take away business that is being observed globally. Amazon Restaurants does not work well even when comparing the economic returns of the different rivals in the sector, and this without counting the social media for restaurants that already offers the take out services from their own restaurant pages.
And it is that according to data from The NPD Group and Cowen and Company, in 2022 the turnover derived from take-out orders would increase to $ 75.9 billion, considering only US restaurants. That's 28.5 billion more than in 2018; or what is the same, a growth of more than 60%. According to Melissa Wilson, director of Technomic, it has only been a "whistle in the radar." The professional continued her exchange for Skift Table analyzing some of the reasons why Amazon's proposal could never come to fruition: «Compared to other service providers, we have observed that Amazon has been very slow in its approach to growth ».
The reasons why the escalation of services has not taken place are not clear, but Wilson considers as possibilities the rise on board of Whole Foods, which was acquired by Amazon in 2017, as well as the difficulties derived from the search for a second headquarters, exploration in which the corporation has been embarked for months.
«Let's not rule out Amazon. It is possible that they have only been testing the ground, have verified the strong penetration in the market of the competitors, and have decided to withdraw for the moment,” concludes Melissa