Amazon Ends Restaurant Delivery Service

Posted On: 6/12/2019

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Vending and micromarket operators have one less competitor in the food-delivery space with Amazon’s June 11 announcement that that it is ending Amazon Restaurants in the U.S., with operations ceasing on June 24. The Internet retail giant launched the service, delivering local restaurant food to Prime members, in 2015 in Seattle, WA, before expanding it to two dozen cities.

Amazon Restaurants struggled to secure its spot against competitors like Uber Eats, DoorDash and Grubhub prompting the company to shutter the service in London in November, which was the only location outside the U.S. where it operated. Changing its approach, in May, Amazon invested in Deliveroo, a London-based global delivery service that serves 14 countries and territories including Australia, France and Germany.

Despite the closure of the restaurant-delivery service, Amazon Prime members can still order groceries to be delivered from Whole Foods, which Amazon bought in 2017. The online retail giant also delivers groceries through AmazonFresh, available to Prime members for an additional $14.99 a month.