Amazon Restaurants To Shut Down Food Delivery Service By June End

Amazon Restaurants To Shut Down Food Delivery Service By June End

               Amazon Restaurants: In the latest development, Amazon has finally announced that the company is going to deliver its last mail on June 24th, 2019. The Amazon restaurant service was launched four years ago for on-demand delivery of food for the prime customers. The food delivery sector has been women since the launch of Amazon restaurant and is underneath a massive growth phase, not only in the United States but around the world. However, the move to close the Amazon restaurant chain which currently serves in more than 20 cities of the United States is a surprise and a disappointment as well.

Amazon Restaurants To Shut Down

Amazon restaurants along with other food delivery services like Daily Dish well completely halt this month onwards. Daily Dish is the on-demand food catering service for corporate houses and offices. It well serves its last meal on 14th June 2019. Amazon entered the food delivery business about four years ago and has now finally decided to conclude without citing any proper reason.

The move comes as a surprise because Amazon restaurants were under an expansion face and a number of outlets were added in major cities in January itself. Moreover, senior level management was also taken into consideration just a few months ago. The advertisement for the app was also on. However, Amazon surprisingly decided to conclude the serviced later this month.

Earlier, Amazon restaurants were closed in the united kingdoms after serving for 2 years. Hence, Amazon restaurants will also be shutting down in all the cities of the United States. However, there are many other players in the food delivery business including Uber eats. It is a clear advantage for these food delivery apps to gain the market share which Amazon will be losing. If you are a frequent customer of this Amazon service, consider the following Amazon restaurant alternatives.

What will happen to the workers?

In an exclusive interview, the spokesperson of Amazon said that the bottom level employees have already been shifted to other roles in the company itself. Some employees are been given and other benefits and a settlement process is currently going on. The spokesperson also added that the company will look after the interest of all the employees who are currently involved in Amazon restaurants. They will create new jobs within and outside the company for them.

Is this Move Justified?

Well, Amazon has not officially cited any reason for closing down the service. However, experts believe that Amazon is closing down Amazon restaurants but it is not going to do away with the booming food delivery business. This is evident from the fact that Amazon has recently invested as much as $575 million in a food delivery startup. Hence, it seems that Amazon is trying to play safely in the low Margin business. They are going to play in the food delivery sector via third-party players instead of directly jumping in.

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Trey Warsame

About the Author: Trey Warsame