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Amazon to shut down its food delivery business in December: Report
Amazon Food launched in May 2020
Amazon Food launched in May 2020 as the e-commerce giant's competition to Swiggy and Zomato.
Amazon, one of the largest e-commerce websites in India, will reportedly shut down its food delivery business in December in India. While Amazon's food delivery business hasn't been as successful as Swiggy or Zomato, the announcement comes as a surprise, as the company also recently decided to wind down its edtech unit. Amazon's latest decision to shut down its food delivery business was reportedly communicated to its restaurant partners, mentioning closing these services by December 29.
According to Amazon's communication seen by The Economic Times, the company has made it clear that its food delivery business, called Amazon Food, will be discontinued as of December 29. However, the e-commerce giant has assured restaurant partners that they will comply with all "payments and other contractual obligations" until said period.
However, according to the letter, the company will provide partners access to Amazon tools and reports until January 31.
"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," Amazon told restaurant partners, as quoted.
Amazon Food launched in India as the e-commerce giant's competition to Swiggy and Zomato. The service debuted in Bengaluru in May 2020. By March 2021, Amazon Food has expanded to 62 pins across Bengaluru.
The announcement to shut down Amazon Food comes a day after it was reported that the company would suspend Amazon Academy, the online learning platform for high school students in India. The Amazon Academy platform debuted early last year amid the COVID-19 pandemic.
