Amazon's plan to take on GrubHub has launched in Seattle (AMZN)
Watch out, GrubHub, there's a new food delivery competitor in town — Amazon.
Amazon's Prime Now one-hour delivery app has launched in Seattle zip codes, the company announced on Tuesday. It plans to increase its delivery reach in the coming days.
“For many of these restaurants, this is the first time they are offering delivery," Gus Lopez, the general manager at Amazon Restaurants said in a press release.
Local restaurants working with Amazon's delivery service include Wild Ginger, Cactus, Skillet, Marination Station, Re:public, Cafe Yumm!, Ten Mercer, and Mamnoon.
Customers will incur no additional fees or delivery charges on all orders for a limited time. This makes it a direct competitor with other food services like GrubHub and Seamless. GrubHub also offers a food delivery service that comes at no cost to consumers. Instead, it charges the restaurant a small fee for every delivery it provides.
But one of Prime Now's advantages is that it promises to deliver within the hour. Customers can also track their meal's progress from preparation in the kitchen to when the food is en route by an Amazon delivery driver.
The no-charge promotion is also a perk for Prime Now users since the service is usually free for two-hour deliveries but charges $7.99 for an expedited, one-hour delivery.
Amazon says the restaurants will also benefit, as they will gain access to Amazon's Prime customers who shell out $99 yearly to receive two-day shipping on over 20 million items free of cost.
Last week, Amazon announced it was opening a division in New York and Seattle, showing the company's latest efforts to expand its e-commerce business into the real world, with the rise of grocery and meal delivery services.
Launch of the restaurant delivery app also follows reports from last month that Amazon Prime Now delivers wine, beer, and other liquor to Seattle residents.
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