Tech

Amazon to close food delivery business in India


Amazon will close its food delivery business in India by the end of the year, the retailer announced on Friday, pulling out of a vertical it entered. Within 3 years.

The company said it will shut down its food delivery business called Amazon Food on December 29. The company launched Food in May 2020 in parts of Bangalore, India. The company has since expanded its service across the city and partnered with additional restaurants, but has never extensively promoted or marketed its platform.

“We do not take these decisions lightly. A spokesperson for Amazon.com told TechCrunch in a statement: “Amazon remains focused on providing the best online shopping experience for our ever-growing customer base, offering great value and convenience. We offer the largest product selection.”

The announcement is part of the company’s broader restructuring in India. Earlier this week, Amazon announced the following: Closing the edtech Service Academy in the country next year.

India is an important overseas market for Amazon, Deployed over $6.5 billion domestic local business. But a recent report from investment firm Sanford C. Bernstein said the company has lagged behind Walmart’s Flipkart domestically and is struggling to expand into smaller cities and towns in India.

Amazon’s gross merchandise value in the country in 2021 will be between $18 billion and $20 billion, trailing Flipkart’s $23 billion, analysts said in a note to clients.



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