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Amazon to shut restaurant delivery service in U.S.

12 June 2019

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

Amazon Restaurants was launched in 2015 in Seattle and was created to give Prime members a way to order meals, apart from products and groceries, through the online retailer.

Amazon is closing its USA restaurant delivery service, a 4-year-old business that failed to take off amid fierce competition from Uber Eats, DoorDash and others.

'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.

The official shutdown date is June 24, Amazon told GeekWire.

With Amazon out of the restaurant delivery business, analysts said others could pick up the crumbs.

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.

"Many of the small number of employees affected by this decision have already found new roles at Amazon, and others will be provided personalized support to find a new role within, or outside of, the company", the company said in a statement.

This move comes less than a month after Amazon led a $575 million funding round for Deliveroo, a United Kingdom -based food delivery company. It is also ending its Daily Dish program, which delivered lunch to workplaces.

Amazon has dabbled in food delivery ever since launching grocery delivery service AmazonFresh in Seattle more than a decade ago.

As it is, restaurant companies are increasingly faced with the reality that delivery customers prefer their own services.

Grubhub, meanwhile, saw revenues reach $324 million for the first quarter, up 39 percent year-over-year, though its operating margin dipped by more than 10 percent, The Motley Fool noted.

Grubhub's shares were up about 7 percent this morning, after the news was reported that Amazon will end delivery this month.

Amazon to shut restaurant delivery service in U.S.