Amazon closes its restaurant delivery service

Amazon to shut restaurant delivery service in U.S.

Amazon to shut restaurant delivery service in U.S.

It expanded into the United Kingdom, but Amazon shut down the service in that country late past year.

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

Amazon will shutter its Amazon Restaurants food delivery service in the US later this month, GeekWire has learned.

Still, Amazon.com Inc. has shown interest in delivering meals to diners' doorsteps. The company is getting out of the restaurant food delivery business.

Forbes called Uber Eats the company's "secret gold mine" and on the company's earnings call last month, Uber CEO Dara Khosrowshahi called food delivery "a huge category" and said it could eventually be larger than the ride-hailing business.

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Uber Eats, for example, delivers Big Macs from McDonalds; DoorDash has a partnership with Wendy's; and Grubhub delivers Taco Bell chalupas and buckets of KFC's fried chicken.

(The U.K. arm of Amazon Restaurants closed in November 2018.) According to the company, the few people from Amazon's 650,000-strong workforce who focused on the sites have either been moved to other parts of the company or will be assisted in finding other jobs. Prime members can get groceries delivered from Whole Foods, its supermarket chain it bought for $13.7 billion in 2017. Update: Shares of Grubhub were up more than 6 percent Tuesday morning.

The US tech giant was the lead investor in a $575 million (£451 million) funding round that will help the British firm expand and out-do its rivals Uber Eats and Just Eat in the UK. Then, in May, Amazon made an investment in Deliveroo, a London-based delivery service that operates in 14 countries and territories around the world including Australia, France and Germany.

But its share in the United Kingdom grocery market is still less than one percent however, according to market researchers Kantar Worldpanel.

With the closure in the US, Amazon Restaurants is officially dead.

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