Amazon Inc will shut down a food-delivery business it was testing in India, the e-commerce giant said on Friday, a day after it announced the winding down of its online learning platform for high-school students in the country.

Amazon Food, a business the company was trialing in the southern Indian city of Bengaluru, would be discontinued, it said.

“As part of our annual operating planning review process, we have made the decision to discontinue Amazon Food,” a company spokesperson told Reuters.

“We don’t take these decisions lightly. We are discontinuing these programmes in a phased manner to take care of current customers and partners.”

The Economic Times earlier reported that the business would be discontinued from Dec. 29 onwards, citing a communication from the company to its restaurant partners.

Amazon launched Food in India in May 2020 in parts of Bengaluru. The company later expanded the service across the city, tying up with additional restaurants, but it never heavily 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 company said at the time of launch.

https://jac.yahoosandbox.com/1.3.0-rc.1/safeframe.html India’s food delivery market is estimated to be worth $20 billion in three years, according to Sanford C. Bernstein. Zomato, publicly listed, currently maintains a small lead in the market against rival Swiggy, backed by SoftBank, Prosus Ventures and Invesco.

On Thursday, Amazon said it was shutting down the Amazon Academy platform in India that was launched early last year amid a boom in virtual learning during the COVID-19 pandemic.

An uncertain macroeconomic environment is making the e-commerce giant review its global workforce, as the company plans to lay off around 10,000 employees in corporate and technology roles, Reuters reported last week.

India is a key overseas market for Amazon, which has deployed over $6.5 billion in its local business in the country. But the company is lagging Walmart’s Flipkart and struggling to make inroads in smaller Indian cities and towns, according to a recent report by Sanford C. Bernstein.

Amazon’s 2021 gross merchandise value in the country stood between $18 billion to $20 billion, lagging Flipkart’s $23 billion, the analysts said in a report to clients.

LEAVE A REPLY

Please enter your comment!
Please enter your name here