Amazon has made it clear: they see big growth in food delivery.
First was Amazon Fresh, the grocery delivery Amazon launched 9 years ago. Last year the Seattle online retailer launched Amazon Restaurants, a restaurant meal delivery service now operating in multiple cities across the US. And now, the company is launching a new daily deals lunch service called the Daily Dish, which offers daily lunch specials from a handful of select restaurant partners.
The service looks a lot like Peach, the Seattle-based lunch delivery service company started by former Amazon employees. The Daily Dish is available to Amazon Prime customers and is available only in Seattle for the time being, but as we quickly saw with Amazon Restaurants, we’ll likely see the Daily Dish in other cities soon. Unlike food delivery services like Uber Eats, the model for the Daily Dish looks to be limited to a small set of specific partners, and has featured meal selections every day from one or two of those partners in a given city.
Our take: Amazon’s growing ambitions around food delivery is both impressive and scary (if you are a competitor). Food delivery is a capital intensive business, but the total market size is massive and Amazon (clearly) has the capital for a sustained push into this market.
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