Amazon May Be Looking to Break Into the Takeout-Delivery Market The new service will reportedly be a part of Amazon Local and compete directly with services like Seamless and GrubHub.

By Benjamin Kabin

Opinions expressed by Entrepreneur contributors are their own.

Next time you are craving a pizza, instead of calling up your local mom-and-pop shop to place your order, you may be looking to Amazon to deliver your pie.

That's right -- Amazon appears poised to make another move into the local marketplace with an upcoming takeout-delivery service to compete with companies like GrubHub and Seamless, reports say.

The new service will be a part of Amazon Local, a daily-deal service similar to Groupon and will have its initial launch on iOS in Seattle. TechCrunch first reported the news after the feature was reportedly turned on for a brief period before being taken down again.

Related: Amazon May Launch a Local Services Marketplace

The online-retail giant has also reportedly been in contact with already-established local service companies like the San Francisco-based Thumbtack, a company that connects customers to more than 60,000 service providers.

Amazon is yet to confirm the details but reports say the company is planning to expand the takeout service to other cities gradually and eventually globally, in a similar fashion to the rollout of its grocery delivery service, Amazon Fresh.

Reports say Amazon is also considering expansion through acquisition. Among the companies Amazon may be considering are Peach, a local takeout service in Seattle, Maryland and Virginia and Caviar, a similar service operating in San Francisco, Chicago, Washington D.C., New York and Boston that offers free GPS tracking on customers' orders.

Related: Amazon Unveils Its Fire Phone

Besides being known for offering just about anything to customers, the new push into local commerce is in line with Amazon's strategy to become the go-to company for many small-business owners.

Besides providing a marketplace for entrepreneurs to sell products on, Amazon already provides a host of backend products such as Amazon Web Services, a platform with various cloud computing offerings that allows companies to scale quickly. It also recently rolled out subscription payments for startups.

Related: Amazon Will Now Manage Subscription Payments for Startups and Businesses

Earlier this month Reuters reported that Amazon also plans to launch a locals-services marketplace to compete with Yelp and Angie's List. Although services will be new territory for the retail giant, Amazon has already experimented with services like free installation for Nest thermostats.

With more than 160 million paying customers, Amazon already appears to have the client base to make its local ventures a success. Now it's just a matter of getting consumers to think about
Benjamin Kabin

Journalist

Benjamin Kabin is a Brooklyn-based technology journalist who specializes in security, startups, venture capital and social media.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

'My Brain Thrives on Variety': His Side Hustle Inspired By 'The 4-Hour Workweek' Led to $600,000 in 16 Months

Mark Hellweg, 42, knows what it takes to start a business "with a fraction of the capital."

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Social Media

How to Turn Social Media Moments Into Newsworthy Stories That Captivate Audiences

How a simple TikTok of a baker kneading sourdough at 30,000 feet sparked global headlines, social media debates and a lesson in viral storytelling.

Growing a Business

Stop Selling Services — How MSPs Can Build Brands That Clients Can't Resist

In 2025, the managed service provider landscape is more competitive than ever. To stand out, MSPs must shift from selling technical services to building magnetic brands rooted in trust, value and differentiation.

Science & Technology

AI Isn't the CEO — Why Human Judgment Still Rules in Business Decisions

AI is transforming business operations, but human oversight remains essential for strategic decision-making. Here's how to strike the right balance between automation and human input.