Amazon all set to enter India's food delivery market

An Amazon spokesperson was not immediately available for comment.Amazon’s foray into the food delivery market would create new challenges for Prosus Ventures-backed Swiggy, and Zomato, a 10-year-old startup that acquired Uber’s Eats business in India for about $180 million in January.Both the startups, having raised more than $2 billion together, are still not profitable, losing more than $15 million each month to acquire new customers and sustain existing ones.Anand Lunia, a VC at India Quotient, said in a recent podcast that the food delivery firms have little choice but to keep subsidizing the cost of food items on their platform as otherwise most of their customers can’t afford them.Figuring out a path to profitability is especially challenging in India as unlike in the developed markets such as the U.S., where the value of each delivery item is about $33; in India, a similar item carries the price tag of $4, according to estimates by Bangalore-based research firm RedSeer.In recent years, both Swiggy and Zomato have expanded beyond food delivery businesses.