Amazon to shut down food delivery business in India in December 

Amazon entered a $20 billion vertical 3 years ago in India which was called Amazon food. However, by the year-end, Amazon will shut down its food delivery business in India.

Amazon food, which is the food delivery arm of Amazon, will shut down on December 29, 2022.

The statement received from Amazon on Friday is “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.”

Amazon is current restructuring its businesses in India and the decision to close Amazon food is a part of this restructuring. Amazon will also be closing down its edtech service academy by next year.

Although Amazon has invested $6.5 billion in India, and although India is a key marketplace for Amazon, still Amazon is having tough competition from Flipkart which has made inroads into the smaller towns and cities of India as per a report by Sanford C. Bernstein.

When Did Amazon Food Start?

Amazon launched its food deliery business, Amazon food, on May 2020. It initially started in select parts of Bengaluru. The company later up tied with many restaurants and tried to cut through the noise. But it was never marketed or promoted heavily which was possibly a cause for its downfall.

The food business is now set for closure on December 28.

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