Amazon shutters restaurant delivery service

(CNN) – Amazon is a behemoth, however it will probably’t disrupt every part. The firm is getting out of the restaurant meals delivery enterprise.

Amazon Restaurants is shutting down within the United States and can stop operations on June 24, Amazon introduced Tuesday. The service launched in 2015 in Seattle earlier than increasing to just about two dozen cities and delivered meals to Prime members.

“Many of the small number of employees affected by this decision have already found new roles at Amazon, and others will be provided personalized support to find a new role within, or outside of, the company,” the corporate stated in a press release.

With the closure within the US, Amazon Restaurants is formally lifeless. It failed to realize traction towards its international rivals, together with DoorDash, Grubhub, Uber Eats, Postmates and Just Eat.

Shares of Grubhub rose 5% in early buying and selling following Amazon’s announcement.

Amazon started dialing again Restaurants in November, when it shuttered the service in London — the one non-US location the place it operated. Then, in May, Amazon made an investment in Deliveroo, a London-based delivery service that operates in 14 nations and territories all over the world together with Australia, France and Germany.

Although Amazon is dismantling this a part of the enterprise within the US, the corporate nonetheless delivers meals in different methods. Prime members can get groceries delivered from Whole Foods, its grocery store chain it bought for $13.7 billion in 2017.

It additionally delivers groceries via AmazonRecent, a service that prices an additional $14.99 per month for Prime members.

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