Amazon Will Kill Its Restaurant Delivery Service

GrubHub Stock Rises as News Hits of Amazon Restaurants Closing

Following its shuttering in London, Amazon Restaurants is also slated to close up shop in the U.S. later this month, according to GeekWire.

For Amazon Prime members, it provides the same services as other food-delivery apps like Uber Eats and Deliveroo, seeing meals delivered to their houses through Prime Now or the Amazon Restaurants website.

'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 Seattle-based retailer said in a statement that the service will be discontinued in the US on June 24.

(The U.K. arm of Amazon Restaurants closed in November 2018.) According to the company, the few people from Amazon's 650,000-strong workforce who focused on the sites have either been moved to other parts of the company or will be assisted in finding other jobs.

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

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Heard of Daily Dish?

Consolidation in the delivery business has major implications for restaurants, giving more power to a handful of delivery players that are generating their own customer bases.

Amazon's food delivery service is up for the chopping block.

But this doesn't mean Amazon is getting out of the delivery game: It is pushing more delivery at Whole Foods, for instance.

Uber Eats, which launched more than three years ago and is live in 500 cities globally, generated $1.46 billion in revenue last year, up from $587 million in 2017, and brought in $536 million during the first quarter of 2019.

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. Grubhub estimates the market has only about 15 percent penetration. Shares of Grubhub soared 7 percent Tuesday.

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