Amazon closes its restaurant delivery service

Amazon closes its restaurant delivery service

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

Just some of the food available on the Amazon Restaurants website - for now.

Amazon Restaurants first launched in Seattle back in 2015. After the Whole Foods buyout, speculation turned to what Amazon's next big acquisition could be, and the purchase of a more established restaurant delivery brand was often mentioned. Amazon will be ending its Amazon Restaurants service later this month, according to the site GeekWire.

Still, Amazon has shown interest in delivering meals to diners' doorsteps.

The closure of the USA business, which was first reported by technology news site GeekWire, will happen on June 24th. The company's grocery-delivery platform, AmazonFresh, is still going strong, and earlier this year, Amazon poured millions of dollars into a funding round for United Kingdom -based food-delivery site Deliveroo, which operates throughout Europe, Asia, and the Middle East.

Data from Restaurant Business sister company Technomic has found that two companies, DoorDash and Uber Eats, have accounted for much of the growth in the service over the past year, forming something of a "big three" in the business along with Grubhub.

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With Amazon out of the business, analysts said others could pick up its business. Shares of Grubhub Inc. soared 7% Tuesday, for instance.

But Scott thinks Amazon isn't abandoning the business altogether. "The shuttering of the platform doesn't necessarily mean that Amazon won't eventually invest in the space", he said. 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.

The latest partnership is a major boost to the British food delivery service which is fiercely competitive.

As it is, restaurant companies are increasingly faced with the reality that delivery customers prefer their own services.

'Amazon has been an inspiration to me personally and to the company, and we look forward to working with such a customer-obsessed organisation, ' Mr Shu said.