Failure Case Study: Amazon Restaurants in the UK - Facing the challenges of the competitive online food delivery landscapeSummary
Amazon Restaurants, offering online food delivery ordering from a range of participating restaurants, launched in London in 2016, opened to Amazon Prime subscribers across the capital. However, in November 2018, Amazon closed the service.
Online/app-based food delivery is a growth market in the face of pressure on traditional quick-service restaurants. This has inspired both new start-ups and bigger brands with logistics and online clout to explore such services, with competition springing up in major cities in markets such as the US, the UK, and Europe.Scope
- For a value-added service to attract usage, it needs to be offering something one cannot get elsewhere, or offer a comparatively better proposition. Amazon Restaurants simply was not managing that in the London context.
- Its degree of choice was inferior to the competition and it alone was unlikely to be a reason to purchase a Prime subscription.
- The food delivery marketplace in key locations such as London has become highly competitive, with major players making it difficult for new entrants.
- Uber Eats and Deliveroo are more emblematic of the "sharing economy," which is characterized by, and favors new, agile start-ups with creative ideas and brands that reflect the "new-ness" of that shared services concept. Amazon in comparison reflects the previous generation of online services development and association and possibly lacks the popular association with shared innovation.Reasons to buy
- Gain a broader appreciation of the fast-moving consumer goods industry by gaining insights from both within and outside of your sector.
- Reduce the risk of failure by learning from brands/products that have under-performed: failed innovation can severely impact profit and reputation.
- Understand the relevant consumer trends and attitudes that drive and support innovation success so you can tap into what is really impacting the industry.
- Access valuable strategic take-outs to help direct future decision-making and inform new product development.
Publisher Name : GlobalData