Amazon is keeping both feet in the food delivery sector even as competition from the likes of Uber and Postmates takes away market share. In a sign of tough times, Amazon Restaurants has sent home an unknown number of workers in a bid to stabilize the business in a sector that is reportedly making losses. Multiple unconfirmed sources indicated that more than 50 employees have been let go in a restructuring effort.
Amazon Restaurants is struggling in a crowded marketplace that has formidable opponents like Uber, Postmates, GrubHub, DoorDash, Eats and numerous others. The U.S. food delivery market is estimated to be worth more than $40 billion.
Meanwhile the parent company, Amazon, released a statement saying that the company continues to hire across its many divisions and currently has on its payroll more than half a million employees. It added that they are regularly appraising positions across the board resulting in ever-changing employee numbers. The statement further emphasized that the online giant always tries to fit employees who are laid off in other positions within the organization.
The company has entered into partnerships in its effort to increase market share. Last September, it announced an alliance with Olo, a software maker for restaurant ordering. The deal provides Amazon with a database that has thousands of customers and integrates orders directly into restaurants’ point of sale systems.
Amazon Restaurants launched operations back in 2015 when it made its first deliveries in Seattle, Amazon’s hometown. Since then the company has expanded its network and now provides the service in London and 20 U.S. cities. The service is available to Amazon’s Prime members.