Amazon is finally giving in to tough competition from GrubHub Inc, DoorDash, Uber Technologies’ and Uber Eats services in restaurant food delivery service.
The company said Tuesday on its website that it will end the U.S delivery service on June 24, 2019, that is about two weeks from today.
“A small fraction of Amazon employees are affected by this decision, and many of those affected have already found new roles at Amazon,” the company said in a statement. “Employees will be offered personalized support to find a new role within, or outside of, the company.”
Launched in 2015 in Seattle Washington, Amazon Restaurants then had the mission of giving Prime members a way to order meals, apart from products and groceries, through their website. The service was later expanded to more than 20 U.S. cities, and then to London. The London food delivery service was ended in November 2018.
Amazon Restaurants was a very little fraction, accounting only about 2% of its U.S market, according to Jeremy Scott, a food and restaurant analyst at Mizuho.
Though it is shutting down its Restaurant service in the U.S, Amazon.com Inc still has ambitions in food delivery service. Last month, the company bought a stake in British online food delivery company Deliveroo, resulting to a $575 million fundraising.