Amazon is planning to launch its private food brands in Bengaluru through its cloud kitchen. The US-based e-commerce giant will do so once it launches food delivery services in India. Amazon is trying to follow the footsteps of Swiggy which runs cloud kitchens to not only increase supply but also to amass more revenue. Cloud kitchens are restaurants without dine-in facilities or walk-in customers. The company is expected to launch its own food delivery service by Diwali under the Amazon Restaurant brand.
Amazon and Catamaran Venture’s joint initiative Prione Business Services will operate this business. Amazon is also teaming up with a bunch of national restaurants and offering a lower commission of 6-8% for a year as part of its food delivery launch. The company recently launched its online grocery store, Fresh, in Bengaluru to supply fresh fruit, vegetables, and dairy products. “In India, there is a supply problem when it comes to restaurants. And, Amazon is trying to augment that with the cloud kitchen,” said one of the people. Amazon has also invested in Rebel foods and fresh menu to render a better experience to the customers. But none of the deals have fructified.
Amazon’s kitchen is being set up in southeast Bengaluru close to Ola’s Foodpanda which is catering to similar service. One of the investors who has backed the cloud kitchen company said, “Full stack in India is the only way in India.” He further added, “ Amazon right now is just experimenting.” Amazon is planning to make this a base to test deliveries and build a market in HSR layout, considered one of the most tech-friendly neighborhoods in the city.