Amazon to shut down its restaurant delivery service

Say goodbye to Amazon's food delivery service

Say goodbye to Amazon's food delivery service

GeekWire also amusingly pointed out that the Amazon Restaurants Twitter account was still updating as of Monday. That could give these companies more leverage in negotiations over rates or over restaurant chains' ability to charge higher prices on delivery orders.

Amazon.com Inc said on Tuesday it would end its USA restaurant food delivery service on June 24, giving in to intense competition from GrubHub Inc, DoorDash, Uber Technologies' Uber Eats services.

With the closure in the US, Amazon Restaurants is officially dead. Amazon shut down the London branch of Restaurants late a year ago, which could have been a sign of its impending US demise, in retrospect.

The official shutdown date is June 24, Amazon told GeekWire.

Amazon in May joined the battle to feed the UK's insatiable appetite for takeaways by investing in food delivery service Deliveroo.

"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.

However, Amazon still has ambitions in food delivery.

But this doesn't mean Amazon is getting out of the delivery game: It is pushing more delivery at Whole Foods, for instance.

Heard of Daily Dish?

With Amazon out of the restaurant delivery business, analysts said others could pick up the crumbs.

Forbes called Uber Eats the company's "secret gold mine" and on the company's earnings call last month, Uber CEO Dara Khosrowshahi called food delivery "a huge category" and said it could eventually be larger than the ride-hailing business.

Grubhub, meanwhile, saw revenues reach $324 million for the first quarter, up 39 percent year-over-year, though its operating margin dipped by more than 10 percent, The Motley Fool noted.

Shares of Grubhub rose 5% in early trading following Amazon's announcement.

Investors continue to place big bets on food delivery companies.

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