Amazon Plans To Shut Down Restaurant Delivery Service Due To Competition From Ubereats, Grubhub

Amazon (AMZN) said Tuesday that it plans to end its Amazon Restaurants delivery service by June 24, which allows Amazon Prime subscribers to order food to be delivered from nearby restaurants.

Restaurant delivery is a massive phenomenon in the United States, with companies like Ubereats, Doordash and Grubhub dominating the market. Amazon's service failed to keep pace with its competition.

The service is available in over 20 U.S. cities, including New York City, Los Angeles and Miami.

Amazon also offered the service in London, but it was shut down last November. Workers who worked for the service will be given new roles with Amazon or assisted in finding new positions.

Although Amazon is shutting down the service, its expanding to new frontiers in other areas. The company plans to utilize drones to deliver packages to homes and is also considering buying Boost mobile to take advantage of its wireless network.

The company also still maintains its AmazonFresh program in some U.S. states which delivers groceries from Whole Foods to homes. In regards to the restaurant delivery, however, Amazon has invested millions of dollars into UK-based restaurant delivery service Deliveroo which operates in 14 countries around the world.