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Amazon to close its food delivery biz in India

Photo by: Christian Wiediger/Unsplash

Amazon Inc. is set to close down the food delivery business that it is testing in India. The American e-commerce company said Friday last week revealed its decision after its online learning platform for high-school students in the country has come to an end.

It was previously reported Amazon’s food delivery business is set to be discontinued starting Dec. 29. The restaurant partners involved in the trial were already sent notices about the end of the project that is being tested in the southern Indian city of Bengaluru.

The e-commerce giant first launched its delivery business last year amid the massive growth in virtual learning at the height of the COVID-19 pandemic. The company will now shut down its Amazon Academy platform and Amazon Food delivery in India.

"As part of our annual operating planning review process, we have made the decision to discontinue Amazon Food," the spokesperson of the company told Reuters. "We don't take these decisions lightly. We are discontinuing these programs in a phased manner to take care of current customers and partners."

Based on the reports, when Amazon launched the said business in some parts of Bengaluru, it expanded the service in the city through tie-ups with more restaurants. However, the company did not really promote the delivery service or the Amazon Food platform.

Tech Crunch reported that brokerage firm Sanford C. Bernstein stated that the food delivery market in India is estimated to be worth $20 billion in three years, but the service was still halted.

In any case, the announcement is reportedly part of the company’s restructuring in India, starting with the closure of its educational tech service academy.

“We do not take these decisions lightly and 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,” the e-commerce firm said. “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.”

Photo by: Christian Wiediger/Unsplash

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