The retailer said on Friday that Amazon will shut down its food delivery business in India by the end of the year, cutting back from a segment it entered into. less than three years.
The retailer will shut down its food delivery business, called Amazon Food, on December 29 in India. The company launched Food in India in May 2020 in parts of Bengaluru. The company later expanded the service across the city, linking up with additional restaurants, but did not heavily promote or market the platform.
“Customers have been telling us for some time that they would like to order takeaway meals from Amazon as well as shop for all their other essentials. This is especially important in the current times as they stay safe at home,” the company said at the time of Food’s launch.
“We do not take these decisions lightly,” Friday said. “We are phasing out these programs to care for existing customers and partners and we are supporting our impacted employees through this transition. Amazon remains focused on providing our growing customer base with the best online shopping experience with the widest selection of products.” High value and convenience.”
The announcement is part of the company’s broader restructuring in India. Earlier this week, Amazon announced that it would Closing its Education Technology Service Academy in the country next year.
India is a major overseas market for Amazon, which has Published more than 6.5 billion dollars in the local business in the state. But the company lags behind the country’s Wal-Mart and Flipkart Struggling to make inroads in India’s smaller cities And cities, according to a recent report by investment firm Sanford C. Bernstein.
Analysts said in a report to clients that the total value of Amazon 2021 merchandise in the country ranged between $18 billion and $20 billion, lagging behind Flipkart’s $23 billion.