Amazon will shut down its food delivery business in India by the tip of the 12 months, the retailer stated Friday, retreating from a vertical it entered less than three years ago.
The retailer will shut down the food delivery business, referred to as Amazon Food, on December 29 in India. The firm launched Food in India in May 2020 in components of Bengaluru. The firm later expanded the service throughout town, tying up with extra eating places, but it surely by no means closely promoted or marketed the platform.
“Customers have been telling us for some time that they would like to order prepared meals on Amazon in addition to shopping for all other essentials. This is particularly relevant in present times as they stay home safe,” the corporate stated on the time of Food launch.
It stated Friday: “We don’t take these decisions lightly. We are discontinuing these programs in a phased manner to take care of current customers and partners and we are supporting our affected employees during this transition. Amazon remains focused on providing our growing customer base the best online shopping experience with the largest selection of products at great value and convenience.”
The announcement is a part of firm’s broader restructuring in India. Earlier this week, Amazon introduced it might shut down its edtech service Academy in the nation subsequent 12 months.
India is a key abroad marketplace for Amazon, which has deployed over $6.5 billion in the native business in the nation. But the corporate is lagging Walmart’s Flipkart in the nation and struggling to make inroads in smaller Indian cities and cities, in accordance to a current report by funding agency Sanford C. Bernstein.
Amazon’s 2021 gross merchandise worth in the nation stood between $18 billion to $20 billion, lagging Flipkart’s $23 billion, the analysts stated in a report to shoppers.
Amazon to shut down food delivery business in India by Manish Singh initially printed on TechCrunch