Food delivery service by Amazon in India comes to an end

0
Food delivery by Amazon in India comes to an end
Food delivery by Amazon in India comes to an end

In less than three years, Amazon has entered a $20 billion business vertical and is withdrawing from it.

Amazon has announced that it will shut down its food delivery service in India on December 29th, called Amazon Food. There will be an official launch of Food in India in Bengaluru in May 2020. Over the years, the company has expanded its platform to cover more of the city. It has also partnered with additional restaurants, but it has never heavily promoted or marketed them on a wide scale.

Food delivery by Amazon in India comes to an end

Since a long time ago, we have been hearing from customers that they want to order ready-to-eat meals to be delivered to their doorsteps in addition to shopping for all their other essentials on Amazon as well. With modern technology, people can remain at home more safely, and this is particularly relevant to the food that is being launched.

According to a recent report by Sanford C. Bernstein, the market for food delivery in India is estimated to reach $20 billion in three years’ time. It is worth noting that Zomato, which is publicly traded, currently holds a small lead, despite having competition from Swiggy, backed by SoftBank, Prosus and Invesco Venture Capital.

Read More: Amazon unveils new 5th Gen Echo Dot, Echo Dot Kids, & Echo Studio smart speakers

In a statement released on Friday, Amazon said, “These decisions are not taken lightly. It is our intention to discontinue these programs gradually so that we can take care of our current customers and partners. Our affected employees are supported throughout this transition period. We remain committed to providing our growing customer base with the most enjoyable online shopping experience possible. This is done. This is done by offering the most comprehensive selection of products at the best value and convenience possible.

According to Amazon, the announcement is part of the company’s larger restructuring efforts in the Indian market. Earlier this week, it was announced that it would be closing the edtech service Academy that it offers in the country at the end of the current year.

Read More: Pakistan becomes third largest seller on Amazon

In terms of overseas markets, Amazon has established a major presence in India with an investment of more than $6.5 billion, making it one of its most significant opportunities. According to a report released by Sanford C. Bernstein, Walmart’s Flipkart is lagging behind and struggling to gain inroads into smaller Indian cities and towns. This is one of the things that makes the company vulnerable.

As the analysts mentioned in their report to clients, Amazon’s gross merchandise value in the country in 2021 is expected to be between $18 billion and $20 billion. This is lower than Flipkart’s $23 billion.

LEAVE A REPLY

Please enter your comment!
Please enter your name here