Report: Amazon Will Charge Restaurants 27.5% Of Total Bill For New Mobile Ordering Platform

Amazon.com, Inc. AMZN's entry into the fast growing restaurant mobile ordering platform will come at a steep cost to restaurants, according to a report by the New York Post.

According to the New York Post, Amazon will charge restaurants and eateries 27.5 percent of the total check for its mobile ordering service.

Amazon is currently preparing a mobile ordering platform that includes more than 300 Manhattan eateries. Amazon Prime customers can access the service through the Prime Now app.

Amazon's rate is noticeably higher than then 12 to 24 percent that GrubHub Inc GRUB charges but cheaper than the 30 percent Uber is expected to charge restaurants when it begins deploying its fleet network to deliver food through its 'UberEats' platform.

"They're still trying to really figure out what this is," a source said of Amazon's plans. "Is it [a customer] acquisition strategy for [Amazon Prime], or something they'd like to open up to the broader public?"

Shares of Amazon were trading lower by more than 3.5 percent early Monday morning.

Posted In: NewsRumorsTravelRestaurantsTechGeneralAmazon PrimeAmazon Restaurant DeliveryNew York PostUberUberEATS
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