Amazon is launching online food delivery from restaurants in India this year

Amazon.com Inc is planning a foray into the burgeoning online food delivery business in India this year, two sources aware of the development said, in a move that could raise competition in an increasingly crowded market.

The Seattle-based company is working with local partner Catamaran, founded by IT industrialist Narayana Murthy, and has begun hiring staff for the new operation, the sources said, declining to be named because the plans had yet to be made public.

Amazon is aiming to launch the new service delivering from restaurants ahead of India's month-long festive season, which starts in September, one of the sources said.

India's rising middle class has driven the growth of the online food delivery sector, with research firm RedSeer Consulting saying order numbers rose 176% in 2018.

Profitability, however, remains elusive. The industry is dominated by local start-ups Swiggy, backed by Naspers and Tencent, and Zomato, which counts Sequoia as an investor.

Uber Technologies launched its India food delivery service in 2017 but has been unable to keep pace with the local market leaders.

Indian daily newspaper Business Standard on Monday reported that Amazon was in talks to buy Uber Eats.

Amazon last month closed its food delivery operations in the United States in the face of stiff competition.

In India, the company's move into delivery from restaurants and takeaway food outlets will help Amazon to attract customers for its other services