After discontinuing its food delivery service last year, Amazon India is now experimenting with dine-in payments. As part of this ongoing initiative, the company has introduced a limited rollout of bill payments at restaurants through Amazon Pay.
The dine-in payment feature is currently accessible in certain areas of Bengaluru, specifically limited to a curated group of participating restaurants. Users can make use of the Amazon Pay feature within the Amazon app to conveniently settle their bills using various payment methods, including credit/debit cards, net banking, UPI, or Amazon Pay Later. As an introductory offer, Amazon India is currently offering discounts on bill payments at nearly all the listed restaurants.
At present, it is uncertain whether Amazon is testing this feature in additional cities. Despite inquiries seeking clarification, the company has not provided any response.
In order to entice more customers, competing food delivery platforms Zomato and Swiggy have already introduced in-restaurant payment options and discounts. Zomato, in a recent development, has partnered with ICICI Bank to launch its own UPI service, facilitating quicker checkouts and bill payments.
The National Restaurant Association of India, a consortium that represents the hospitality sector, issued an advisory last year, cautioning its members against using dining payment products offered by food delivery firms.
This new experiment undertaken by Amazon is another strategic move to engage customers in India, showcasing their persistent efforts in the country. According to a report by investment firm Sanford C. Bernstein, Amazon has faced challenges and encountered hurdles while trying to penetrate smaller towns. However, the company remains steadfast in its claim that an impressive 85% of its customers originate from tier 2 and tier 3 cities and towns.
The Bernstein report also highlights the tough regulatory environment in India, causing Amazon to fall behind Walmart-backed Flipkart. Notably, Amazon has broken its trend by excluding any references to India in its Q1 2023 results, something that has been consistently mentioned since 2014.
Earlier this year, Amazon became a participant in the Open Network for Digital Commerce, an initiative established by India’s ecommerce ministry. While Amazon’s involvement is limited, the primary goal of this initiative is to create an “interoperable” network that enables sellers to join a digital platform that is not reliant on central marketplaces like Amazon and Flipkart.