Amazon scraps US restaurant delivery business

Amazon is set to cancel its restaurant delivery service in the US later this month, just weeks after making a significant investment in delivery giant Deliveroo in the UK.

Yesterday, the ecommerce behemoth announced plans to scrap its Amazon Restaurant arm by June 24.

It said that the “small number of employees” who would lose their job thanks to the decision had already found new roles elsewhere in its vast network, or would be offered personalised support to find a new role elsewhere.

Amazon Restaurant was launched in 2015, eventually being rolled out to nearly two-dozen cities delivering food to Amazon Prime members.

READ MORE: Amazon makes major investment in Deliveroo

However, much like its efforts here in the UK, its service failed to compete with local rivals like DoorDash, Grubhub and Uber.

The retailer officially cancelled its service here in the UK in December, around the same time it began dialling back its operations in the US.

In May, Amazon made a significant investment in Deliveroo, which now operates in 14 countries after being launched in the UK in 2013.

It said it will use the funds to expand its technology team at its London headquarters, and develop new tool to “offer riders flexible and well-paid work”.

Amazon could be eyeing a similar move in the US.

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