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Retail

Amazon to shut its restaurant delivery service in the US

Amazon Restaurants delivery service
Source: Amazon Prime Now

Amazon.com said on Tuesday it would end its U.S. restaurant food delivery service on June 24, giving in to intense competition from GrubHub, DoorDash, Uber Technologies' Uber Eats services.

"A small fraction of Amazon employees are affected by this decision, and many of those affected have already found new roles at Amazon," the company said in a statement. "Employees will be offered personalized support to find a new role within, or outside of, the company."

Amazon Restaurants was launched in 2015 in Seattle and was designed to give Prime members a way to order meals, apart from products and groceries, through the online retailer. The service was expanded to more than 20 U.S. cities, and then to London where the program ended in November.

The unit was led at one point by the executive also in charge of Amazon's ticketing business, but was overseen later by an executive running its two-hour grocery delivery service, Prime Now, according to their LinkedIn profiles.

However, Amazon still has ambitions in food delivery. In May, the company took a stake in British online food delivery company Deliveroo, leading a $575 million fundraising.

Shares of Amazon edged up 0.4%, while GrubHub rose 8.6%.

Geekwire first reported the news.

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Finance

Amazon launches a credit card for the 'underbanked' with bad credit

Key Points
  • Synchrony Financial and Amazon are partnering on a credit card for those who might not have good enough credit to get one otherwise.
  • “Amazon Credit Builder” lets users build up credit through a secured card, alongside budgeting tools and tips. It allows people eventually to “graduate” to another Amazon Store card once they’ve established credit.
  • “It’s putting credit in the hands of people in a responsible way,” says Tom Quindlen, Synchrony executive vice president and CEO of the bank's retail card operation.