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Amazon to Shut Down Food Delivery Service in India

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Amazon to Shut Down Food Delivery Service in India

(CTN News) – Amazon will cease food delivery operations in India by the end of the year, the company said on Friday, withdrawing from a $20 billion industry it entered less than three years ago.

Amazon Meal, the company’s food delivery service, will cease operations on December 29 in India. It debuted Food in India in portions of Bengaluru in May 2020.

Later, the firm extended the service around the city by partnering with new eateries, but it never pushed or marketed the platform extensively.

Customers have indicated for some time that they would want to get ready-to-eat meals on Amazon in addition to shopping for other necessities.

At the time of Food’s introduction, the business said, “This is especially pertinent because they remain home safe.”

According to Sanford C. Bernstein, the market for meal delivery in India will be worth $20 billion in three years.

Zomato, which is publicly traded, presently has a slight market advantage over competitor Swiggy, funded by SoftBank, Proses Ventures, and Invesco.

Amazon said on Friday, “We take these choices seriously. We are phasing down these initiatives to accommodate existing customers and partners and providing assistance to impacted staff throughout this transition.

Amazon is committed to offering our expanding customer base the finest online shopping experience, widest product variety, and greatest value.”

The announcement is part of a larger reorganization by Amazon in India. It revealed earlier this week that its edtech service Academy would be discontinued in the nation next year.

India is an important international market for Amazon, which has invested over $6.5 billion in the country’s local operations.

According to a recent assessment by Sanford C. Bernstein, the firm lags behind Walmart’s Flipkart and struggles to penetrate smaller Indian cities and villages.

The analysts said in a report to clients that Amazon’s 2021 gross merchandise value in the nation was between $18 billion and $20 billion, behind Flipkart’s $23 billion.

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