Amazon is rolling out free restaurant delivery to Prime subscribers in Los Angeles. The e-commerce company is testing a new delivery service through their Prime Now app that promises free delivery within an hour.
According to Re/code’s Jason Del Rey, there will initially be a few dozen restaurants to order from in the West Los Angeles neighborhoods where the service is rolling out first. Amazon Prime Now restaurant delivery launched in Seattle earlier this year.
The new Amazon Prime restaurant service will directly target Yelp’s Eat24, Seamless/GrubHub, and Square’s Caviar apps. It’s also a retooling of a previous attempt by Amazon to offer restaurant delivery. Starting in 2013, Amazon offered delivery via their Amazon Fresh service. However, Amazon Fresh bundled restaurant deliveries as part of a larger grocery delivery program and included extremely high delivery fees.
Gus Lopez, Amazon Restaurants general manager, told Re/code that Amazon would make money by charging participating restaurants a percentage of sales.