Amazon India is shutting down the food delivery business

Amazon has decided to shut down its food delivery business ‘Amazon Food’ in India on December 29, 2022.

Amazon has already notified all restaurant partners about this decision. The company has also promised to release all payments before winding down the operations. Restaurants will have access to all Amazon tools and reports till January 31, 2023.

“This decision means that you will no longer get orders from customers via Amazon Food after this date. You will continue to receive orders till then and we expect you to continue fulfilling those orders,” a mail sent by Amazon to its restaurant partners, said.

The company began food delivery operations in the country back in May 2022. It was initially launched in parts of Bengaluru and later expanded to other cities. Although the company was in the food delivery business, not many people know about it. The company also never promoted and marketed this business.

As per a report, the online food delivery market was valued at USD 5 Billion in 2021 and is expected to reach 22 Billion by the end of 2027. Zomato and Swiggy are two key players that enjoy the maximum market share. At a time when top food delivery companies were burning cash on ads and offering to retain existing customers and add new customers, Amazon didn’t try anything to promote its food delivery service.

Amazon has invested $6.5 billion in India in the last eight years and tried several verticals along with the e-commerce business. The company says it is committed to the Indian market and will continue to invest across different verticals.

Amazon recently also confirmed that it will be shutting down Amazon Academy by next year. The company also plans to lay off thousands of employees globally.

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