Amazon Restaurants Launch Trial

GrubHub investors sent shares tumbling down 8% due to worries of Amazon's restaurant delivery service launch. While the drop was a bit much for Amazon only announcing NYC and Dallas, I would definitely argue that Amazon's service along with UberEATS and Square's Caviar has GrubHub losing sleep. 

So what is the Amazon service like? Pretty straight forward and up, front and center within the Amazon Prime Now app.


As of this posting, there were roughly 125 restaurants available for my zip code in Midtown West in Manhattan. Restaurants were organized in alphabetical order with filters based on price tiers and type of food. There were no restaurant reviews but each restaurant profile had featured items.


Ordering was simple and the app isolates restaurant orders from product orders. Unlike UberEATS and Caviar, the user sets the tip with a suggested $5 on a $20 tab. The user is provided free delivery for orders over $20 but there was a disclaimer within the app that free delivery is available for a limited time.


Delivery time was average but difficult to gauge after one try. About 10 minutes after ordering, I received a call from Amazon in Seattle saying the driver is a bit behind but will still make it within the hour. Dropoff was seamless and the courier was courteous. Time from order confirmation to delivery was 55 minutes.


Overall it was a positive experience and I believe this service continues to add to the Amazon ecosystem and naturally will gain scale as more of America's wallets shift their share to Amazon. Watch out GrubHub, you have now have 3 major competitors who will release new cities by the week.

Images of the order flow: