Amazon is likely to use Prime Now, its two-hour delivery platform, for its foray into food delivery business in the country, The Time of India reported, citing four people aware of the plan.
According to the TOI sources, the company has also held preliminary discussions with Ola's food delivery unit Foodpanda for a partnership that could be later extended to an acquisition. The company has also approached Uber Eats for the same, the report added.
Prime Now, previously known as Amazon Now, may be used as a platform concentrating on high-frequency use cases of food and grocery delivery, said the report, adding that with this, the company looks to capture a bigger share in the urban market.
“Amazon has spent some time debating whether to build food delivery from scratch or go for partnership and investments. They seem to have opted for the latter. They have held talks with both Uber and Ola for it. Prime Now cannot be sustained just on the grocery delivery as the logistics team has questioned inefficient utilisation of delivery fleet for the express delivery platform,” one of the sources was quoted as saying in the report.
When contacted by the paper, spokespeople of Amazon India and Ola refused to comment on the story.