Amazon will shutter its Amazon Restaurants food delivery service in the U.S. later this month, GeekWire has learned.
Amazon Restaurants first launched in Seattle back in 2015. Amazon expanded the program across more than 20 U.S. cities and later in London. The service gave Prime members a way to get meals delivered to their door, using the Amazon Restaurants website or through the Prime Now shopping app.
…Uber Eats, which launched more than three years ago and is live in 500 cities globally, generated $1.46 billion in revenue last year, up from $587 million in 2017, and brought in $536 million during the first quarter of 2019. 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.
Uber listed Amazon as an Uber Eats competitor in its IPO documents earlier this year.
Grubhub, meanwhile, saw revenues reach $324 million for the first quarter, up 39 percent year-over-year, though its operating margin dipped by more than 10 percent, The Motley Fool noted.
Investors continue to place big bets on food delivery companies. DoorDash raised$600 million last month, valuing it at $12.6 billion.