Amazon to shut food-delivery business in India from December 29

This follows a latest resolution to shutter its
fledgling edtech unit by next year.

“After a cautious analysis, we have now determined to discontinue Amazon Food from Dec 29, 2022. This resolution implies that you’ll not get orders from prospects by way of Amazon Meals after this date. You’ll proceed to obtain orders until then and we count on you to proceed fulfilling these orders,” Amazon informed restaurant companions.

“Please be assured Amazon is dedicated to satisfy all its funds and different contractual obligations and can help you thru this transition. You’ll have entry to all Amazon instruments and studies until Jan 31, 2023. We may also present help until March 31, 2023 for any compliance associated queries,” it added.
A spokesperson for Amazon India confirmed the event.

“As a part of our annual working planning overview course of, we have now made the choice to discontinue Amazon Meals, our pilot meals supply enterprise in Bengaluru. We don’t take these choices frivolously. We’re discontinuing these programmes in a phased method to care for present prospects and companions and we’re supporting our affected workers throughout this transition,” the spokesperson stated in response to a question by ET.

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Amazon began its meals supply enterprise in choose pin codes of the town in 2020 and regularly scaled it throughout most of Bengaluru.

Nevertheless, restaurant companions stated they by no means noticed a lot traction so as volumes from Amazon.

“Most of my order volumes got here from Zomato and Swiggy, and Amazon was not even in double digits when it comes to contribution to my general volumes,” a senior govt at one of many largest cloud kitchen manufacturers in India informed ET.

Sources stated Amazon has additionally seen redundancies in its pharmacy enterprise as a part of latest layoffs and this may also be evaluated for viability going ahead.

“Amazon stays targeted on offering our rising buyer base one of the best on-line buying expertise with the most important choice of merchandise at nice worth and comfort. We stay dedicated to India and can proceed to speculate throughout these areas the place we will convey worth to our prospects together with Grocery, Smartphones and Shopper Electronics, Style & Magnificence, in addition to our B2B choices similar to Amazon Enterprise,” the spokesperson for Amazon India added.

ET was the first to report about layoffs at its India team.

No less than a couple of hundred workers have been impacted, however the cuts may run “deeper” in India.

Globally, Amazon is shedding a minimum of 10,000 workers, in keeping with a
report in the New York Times.

In September, analysis agency Bernstein revealed a report important of Amazon India, saying that the corporate’s efficiency within the nation was “combined”, with continued losses regardless of pumping in $6.5 billion.

Whereas the Amazon India market, Amazon Vendor Companies,
was able to cut losses by almost 23% to Rs 3,649 crore in FY22, losses at its different two companies – funds and logistics – have widened.

Based on the Bernstein report, Amazon has struggled to develop enterprise considerably in high-margin classes similar to vogue and sweetness and private care, that are dominated by rivals Flipkart and Nykaa, respectively.