Amazon is quietly testing a restaurant delivery service in bid to take on GrubHub

BY ALEXEI ORESKOVIC

Amazon is testing a restaurant delivery service, according to a new report in GeekWire.

It's currently testing the delivery service with its own employees in Seattle, where Amazon is based. The report did not say how many restaurants or which restaurants are participating in the test, but noted that the service appears to be related the new Amazon Prime Now one-hour delivery service.

The move would mark Amazon's latest step to extend its online retail empire into an ever-growing array of real-world domains, from grocery and household supply deliveries to referrals for contractors and home services.

Amazon's move into restaurant delivery would put it in direct competition with companies like GrubHub and Postmates, which let consumers in dozens of states use their smartphones to order lunch or dinner from a variety of restaurants and have it delivered straight to their doorsteps.

It's a tough business, with thin profit margins and tricky logistics requirements. But Amazon, which has its own fleet of delivery trucks, has lots of experience with logistics and distribution.

GeekWire spotted a sign at one of Amazon's Prime Now distribution centers near Seattle that offered instructions for handling restaurant order pick ups. GeekWire also said that several drivers confirmed that they are handling restaurant deliveries.

One unnamed restaurant that's participating in the test told GeekWire that it had only handled a single order so far. The restaurant said the service was only available to Amazon employees at the moment but could be available to others at some poing in the future.

News of the restaurant delivery test follows reports that Amazon Prime Now will deliver beer, wine and other booze to Seattle residents.