Amazon to shut restaurant delivery service in US

In this Feb. 14, 2019, file photo people stand in the lobby for Amazon offices in New York. (AP)
Updated 12 June 2019
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Amazon to shut restaurant delivery service in US

  • 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

NEW YORK: Amazon.com Inc. said on Tuesday it would end its US restaurant food delivery service on June 24, giving in to intense competition from GrubHub Inc, 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 US 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.


Lufthansa announces overhaul of budget carrier Eurowings

Updated 24 June 2019
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Lufthansa announces overhaul of budget carrier Eurowings

  • Lufthansa cited falling revenues at Eurowings as a major reason for its warning on full-year profits on June 16
  • Eurowings’ long-haul business would be managed by Lufthansa in the future

BERLIN: Lufthansa on Monday announced a turnaround plan for Eurowings in which the budget carrier will focus on short-haul flights and seek a 15 percent cut in costs by 2022 in the hope of returning to profit.
The German airline cited falling revenues at Eurowings as a major reason for its warning on full-year profits on June 16. Eurowings’ revenue was also forecast to fall sharply in the second quarter.
Lufthansa said its Eurowings fleet would be standardized on the Airbus A320 family and it would seek to boost productivity at Eurowings by limiting itself in Germany to one air operator’s certificate.
Brussels Airlines — the Belgian national flag carrier which Lufthansa took control of in 2016 — would not be integrated into Eurowings, Lufthansa said. A turnaround plan for Brussels Airlines will be announced in the third quarter.
Lufthansa also said it would start pegging its dividend payout ratio to net profit in the future to give the group more flexibility. It would pay out a regular dividend of 20 percent-40 percent of net profit, adjusted for one-off gains and losses.
Lufthansa said Eurowings’ long-haul business would be managed by Lufthansa in the future.
Carsten Spohr, Chief Executive Officer of Lufthansa, said Monday’s announcements sent “a clear signal that this company cares about its shareholders and tries to create value for them.”
Lufthansa said its Network Airlines — made up of Lufthansa, Swiss and Austrian Airlines — would aim to use innovations in sales and distribution to make a contribution to increasing unit revenues by 3 percent by 2022.
Network Airlines will aim to reduce unit costs continuously by 1 to 2 percent annually, the airline said.