Audioburst Search

Larry Magid: Amazon Discontinues Restaurant Delivery Service

Automatic TRANSCRIPT

Hi, I'm Jack with our best Bank. My goal today, decorate the seven tiered cake. Okay. Just a little is seen in all no. Maybe I should have. Let an expert helped me accomplish Michael in for your financial goals are vest is the expert we know the right ingredients for your business to succeed. Visit us for loans flow, tools, and equipment finance when it comes to your finances trust the experts trust our best. Watch me tip more goals at our vets dot com slash experts. I was confessing that I didn't I'd never heard of this service, and I'm an Amazon prime minister no I don't think I don't think you need to be embarrassed by that because I barely knew it myself. It's one of those things if I were in tech journalist, I probably wouldn't have known it because it just what are they had less than two percent market, share there? Nothing compared to door dash grub hub Newburgh eats and even those companies are struggling, they obviously have some cities to keep going with investment. But if the tough market, Amazon just didn't put the resources into getting the word out, which it, why you haven't heard of it was time to prime the way somebody their, their services are. Yeah. I think it was tied to prime. And by the way, I think is based on the fact that I never use service like most people, but sure it's tied to prime and also of course, Amazon is not completely out of the food delivery service because it owned whole foods and Phil as well as Amazon prime pantry, so it will continue to deliver groceries, but when it comes to the costly and logistically difficult aspect of going to restaurants picking up food and delivering it. I guess they've decided that that's not for them. And I wondered that the margin on that cannot be very big. No. It isn't. You think about the amount of labor that goes into the process, I think Uber is clever doing that because they've already got the driver out there driving, you're on anyway. So they didn't have to invest in that particular part of the infrastructure. But if a difficult business, and also you have to have alliances with the likes of McDonald's, and fast food, and also more luxurious food companies to get a good menu of options for people. I did read that. Amazon is taking a stake in deliver ru with British food delivery company. What do we know about that? Well, you're right. It's a British company, by the way, I'm already pulled out of its British market. So yeah, the they're investing. They're not completely divorcing themselves this business, but having a steak is a lot different than owning and operating the service. So, you know, they're keeping their, their toes in the water so to speak.

Coming up next