Amazon to shutdown US restaurant delivery service

Amazon Restaurants food delivery service is shutting down

GeekWire also amusingly pointed out that the Amazon Restaurants Twitter account was still updating as of Monday.

Sorry to those who loved ordering food deliveries from Amazon, but those days are over.

The competition is fierce in the food delivery market, with companies such as Uber, Grubhub, and DoorDash seeing big growth in recent years.

'Amazon has been an inspiration to me personally and to the company, and we look forward to working with such a customer-obsessed organisation, ' Mr Shu said.

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 a year ago.

But Amazon ended the program in London this past November and will say goodbye to its USA service later this month.

Amazon's decision to end Amazon Restaurants removes what at one point held the promise of being a major player in the third-party restaurant delivery race.

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

However, Amazon still has ambitions in food delivery.

Amazon will also shut down Daily Dish, a workplace lunch delivery service that launched in 2016, on June 14. The service launched in 2015 in Seattle before expanding to almost two dozen cities and delivered food to Prime members. The company launched a takeout service in 2014 that let customers use the now-defunct Amazon Local app to order food for pick-up.

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. The company still delivers groceries from Whole Foods via Prime Now in almost 100 US markets.

Uber listed Amazon as an Uber Eats competitor in its IPO documents earlier this year.

Shares of Amazon edged up 0.4%, while GrubHub rose 8.6%. Grubhub estimates the market has only about 15 percent penetration.

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