Amazon’s Food Delivery Business Will End From December 29: Report
Amazon, one of the largest e-commerce websites in India, is reportedly shutting down its food delivery business in December in the country. Although Amazon’s food delivery business has not been as successful as Swiggy or Zomato, the announcement comes as a surprise as the company recently decided to spin off its edtech division as well. Amazon’s recent decision to close its food delivery business has reportedly been extended to its restaurant partners, with the closure of these services being announced on December 29.
According to Amazon’s communication reached by the Economic Times, the company has made it clear that its food delivery business, called Amazon Food, will cease as of December 29. The e-commerce giant has also assured restaurant partners to fulfill all “payments and other contractual obligations” until further notice.
However, according to the letter, the company will provide partner access to Amazon tools and reports until January 31.
“This decision means that you will no longer receive orders from customers through Amazon Food after this date. You will continue to receive orders until then and we expect you to continue to fill those orders,” Amazon told its restaurant partners, as quoted.
Amazon Food was launched in India as the e-commerce giant’s competition to Swiggy and Zomato. The service started in Bengaluru in May 2020. In March 2021, Amazon Food expanded to 62 PINs across Bengaluru city.
The announcement to close Amazon Food comes a day after it was reported that the company is discontinuing Amazon Academy, an online learning platform for high school students in India. The Amazon Academy platform started early last year during the COVID-19 pandemic.
The company has recently been in the spotlight regarding mass layoffs, which are guaranteed to continue well into next year. In a letter sent to employees, Amazon CEO Andy Jassy wrote, “I’ve been in this role now for a year and a half, and without a doubt, this is the hardest decision we’ve ever made in that time (and , we’ve had to make some tough calls over the last few years ago, especially during the heart of the epidemic).
