Amazon to shut down food delivery services in India
Amazon announced on Friday it would close its grocery delivery business in India by the end of the year, exiting a $20 billion vertical it entered less than three years ago.
The retailer will close its grocery delivery business called Amazon Food on December 29 in India. Food in India was launched in a part of Bangalore in May 2020. The company later expanded its service across the city and partnered with additional restaurants, but never promoted or marketed the platform at scale. “Customers have been telling us for some time that they want to order ready-to-eat meals from Amazon in addition to buying all their other essentials, which is especially important in these times of staying safe at home” the company said at the launch of Food.
According to Sanford C. Bernstein, the Indian food delivery market is estimated to reach $20 billion in three years. His Zomato, a publicly traded company, currently maintains a slight market lead over rival his Swiggy, which is backed by SoftBank, Prosus Ventures and Invesco.Amazon said on Friday: “We do not make these decisions lightly. We are phasing out these programs to accommodate our current customers and partners, and to support affected employees during this transition. Amazon continues to focus on providing the best online shopping experience for its growing customer base, offering a wide range of value for money products.
Amazon said on Friday:”We do not make these decisions lightly. We are phasing out these programs to accommodate our current customers and partners, and to support affected employees during this transition. Amazon continues to focus on providing the best online shopping experience for its growing customer base, offering a wide range of value for money products.” The announcement is part of Amazon’s broader restructuring in India. The company announced earlier this week that it will close its Edtech service academy in the country next year. India is an important overseas market for Amazon, with over $6.5 billion invested in local businesses in India. According to a recent report by Sanford C. Bernstein, the company is lagging behind Walmart’s Flipkart and is struggling to penetrate smaller cities and towns in India.Amazon’s gross merchandise value in the country in 2021 ranges from $18 billion to his $20 billion, lagging behind Flipkart’s $23 billion, analysts said in a report to clients. .
