Amazon to close food delivery business in India
Amazon will shut down its food delivery business in India by the end of the year, the retailer said on Friday, pulling out of a $20 billion vertical market in which he entered less than three years ago.
The retailer will shut down the food delivery business, called Amazon Food, on December 29 in India. He launched Food in India in May 2020 in parts of Bengaluru. The company later expanded the service across the city, partnering with other restaurants, but it never promoted or marketed the platform.
“Customers have been telling us for some time that they would like to order ready meals from Amazon in addition to buying all other essentials. safely,” the company said at the time of Food’s launch.
The Indian food delivery market is estimated at $20 billion over three years, according to Sanford C. Bernstein. Publicly listed Zomato currently maintains a small market lead over rival Swiggy, backed by SoftBank, Prosus Ventures and Invesco.
Amazon said Friday, "We do not make these decisions lightly. We are phasing out these programs to care for current customers and partners, and we are supporting our impacted employees during this transition. Amazon remains focused on delivering to its growing customer base of the best online shopping experience with the widest selection of products at a great and convenient price."
This announcement is part of Amazon's broader restructuring in India. It announced earlier this week that it will close its edtech service academy in the country next year.
India is a key overseas market for Amazon, which has deployed more than $6.5 billion in its local operations in the country. But the company is lagging Walmart's Flipkart and struggling to break into small Indian towns, according to a recent report by Sanford C. Bernstein.
Amazon's 2021 gross merchandise value in the country was between $18 billion and $20 billion, lagging Flipkart's $23 billion, analysts said in a report to customers.
Amazon will shut down its food delivery business in India by the end of the year, the retailer said on Friday, pulling out of a $20 billion vertical market in which he entered less than three years ago.
The retailer will shut down the food delivery business, called Amazon Food, on December 29 in India. He launched Food in India in May 2020 in parts of Bengaluru. The company later expanded the service across the city, partnering with other restaurants, but it never promoted or marketed the platform.
“Customers have been telling us for some time that they would like to order ready meals from Amazon in addition to buying all other essentials. safely,” the company said at the time of Food’s launch.
The Indian food delivery market is estimated at $20 billion over three years, according to Sanford C. Bernstein. Publicly listed Zomato currently maintains a small market lead over rival Swiggy, backed by SoftBank, Prosus Ventures and Invesco.
Amazon said Friday, "We do not make these decisions lightly. We are phasing out these programs to care for current customers and partners, and we are supporting our impacted employees during this transition. Amazon remains focused on delivering to its growing customer base of the best online shopping experience with the widest selection of products at a great and convenient price."
This announcement is part of Amazon's broader restructuring in India. It announced earlier this week that it will close its edtech service academy in the country next year.
India is a key overseas market for Amazon, which has deployed more than $6.5 billion in its local operations in the country. But the company is lagging Walmart's Flipkart and struggling to break into small Indian towns, according to a recent report by Sanford C. Bernstein.
Amazon's 2021 gross merchandise value in the country was between $18 billion and $20 billion, lagging Flipkart's $23 billion, analysts said in a report to customers.
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