Why Amazon Couldn’t Compete With Uber and DoorDash

…Unlike other Amazon products, Amazon Restaurants didn’t have a huge reach with a broad base of consumers. The platform operated in 20 cities in the U.S. and London, lagging UberEats, which is in 500. Grubhub does business in more than 2,000 cities nationwide. Postmates, which filed its IPO earlier this year, operates in 3,500 cities.

Amazon Restaurant’s competitors are only getting bigger. DoorDash announced last month it’s raising $600 million and is now valued at $12.6 billion. DoorDash leads in sales in five of the 10 largest metro areas; San Francisco, Washington D.C., San Antonio, Dallas – Fort Worth, and San Diego. Grubhub dominates New York in 68% of delivery sales. Grubhub also leads in the Chicago and Boston metro areas. UberEats leads the pack in the Miami metro area.

Amazon did lead delivery sales in one area—you guessed it, in Seattle, where the tech giant is headquartered.

In addition to the small number of cities served, Amazon Restaurants limited its service to only Prime members, while competitors focused on bringing in customers from anywhere.

Additionally, all of Amazon Restaurant’s direct competitors had exclusive deals with several large restaurant chains. UberEats recently partnered with Seattle-based Starbucks and McDonalds. DoorDash is working with Chipotle, Chick-Fil-A, The Cheesecake Factory and Papa Johns. Postmates joined forces with Popeyes. Grubhub teamed up with Yum Brands, owners of Taco Bell and KFC.


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