Amazon is pulling the plug on its restaurant delivery service amid heated competition in the market.
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Amazon Restaurants will close down in the US on June 24, the company said in a statement. No reason was given, but the service had been struggling to attract customers against Uber Eats, Grubhub, and Doordash, which currently dominate about 80 percent of the US market, according to market research from Edison Trends. Amazon Restaurants is not even considered a top vendor.
Amazon launched its restaurant delivery service in 2015 for Amazon Prime members starting in Seattle. The service then expanded to more than 20 cities across the country including New York, San Francisco, and Washington D.C., as well as overseas. But last year, the company shut down Amazon Restaurants in the UK following reports that it was also slashing jobs at the service's US division.
Still, Amazon isn't done with food delivery. The company continues to deliver groceries through its e-commerce services and via Whole Foods, which it acquired in 2017. In March, Amazon also led a $575 million funding round in UK-based restaurant delivery company Deliveroo.
Although Amazon Restaurants is shutting down, most of the employees with the service will remain with the company. "A small fraction of Amazon employees are affected by this decision, and many of those affected have already found new roles at Amazon," the company said. "Employees will be offered personalized support to find a new role within, or outside of, the company."