Investing.com - The US food market is a 1.5 trillion dollar industry split between groceries and restaurant – and Amazon (NASDAQ:AMZN) wants to be a part of it all.
After making a push into the groceries market with the 13.7 billion dollar acquisition of Whole Foods, Amazon is now ramping up its restaurant delivery operation.
The retail giant began a one-hour restaurant delivery service in Seattle in 2015, and has expanded it to other major cities around the US. However, the service mainly appealed to mom and pop shops – but this is about to change.
Amazon recently teamed up with a company called Olo, who specializes in digital order and pay technology and currently works with 200 restaurants brands.
One of Olo's investors is none other than Danny Meyer, Shake Shack (NYSE:SHAK)'s founder. The partnership between Olo and Amazon could bring major fast food and restaurant brands to Amazon delivery service. Among potential partners are Shake Shack, but also Chipotle and Five Guys.
Clement Thibault, Senior analyst at Investing.com, wrote in a note that "Amazon continues to expand into every market it senses it can disrupt, whether directly related to retail, or not. Now, it is making use its stellar delivery reputation to try and revolutionize the food delivery industry. This is far from being a guaranteed success, but Amazon has the resources to bully itself into the industry".
Would you order take out from Amazon?