Amazon to End Its Restaurant Delivery Service


With the online restaurant delivery market growing ever more competitive, Amazon is discontinuing the service it started four years ago as an alternative to popular apps like Grubhub and UberEats.

Amazon Restaurants, which customers in nearly 200 cities in the United States use to order from local restaurants, will officially close on June 24. Amazon said on Tuesday that the move would allow the company, which owns Whole Foods, to focus on grocery delivery. A company spokeswoman said that only a small number of employees would be affected by the decision and that many of them had already found new jobs within the company.

Since it started in Seattle in 2015, Amazon Restaurants has struggled to gain a foothold in the restaurant delivery market. Together, UberEats, Grubhub and DoorDash control nearly 80 percent of the restaurant delivery business, according to the research firm Edison Trends.

“In the U.S., Amazon has seemed like a looming distant threat, but it was never competition,” said Miranda Lambert, a research analyst at Euromonitor International.

“The ultimate winner cannot win based off of the model that is in place today,” Mr. Cakmak said. “Restaurants will just bleed out. You’re going to kill independent restaurants.”



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