Amazon, one of the largest e-commerce websites in India, is reportedly ending its food delivery business in the country in December. While Amazon’s delivery business hasn’t been as successful as Swiggy or Zomato, the announcement comes as a surprise that the company recently decided to end its edtech unit as well. Amazon’s latest decision to shut down its food delivery business was reportedly communicated to its restaurant partners, citing the closure of these services on Dec. 29.
According to Amazon communications accessed by The Economic Times, the company has made it clear that its food delivery business, called Amazon Food, will be shut down from December 29. The e-commerce giant has also assured restaurant partners that they will honor all “payments and other contractual obligations” until the said period.
However, according to the letter, the company will allow partners access to Amazon tools and reports until Jan. 31.
“This decision means that you will no longer receive orders from customers through Amazon Food after this date. Until then, you will continue to receive orders and we expect you to continue to fulfill those orders,” Amazon told restaurant partners.
Amazon Food was launched in India as the e-commerce giant’s competitor to Swiggy and Zomato. The service debuted in May 2020 in Bengaluru. In March 2021, Amazon Food expanded to 62 pins in Bengaluru city.
The announcement to close Amazon Food comes a day after it was announced that the company would shut down Amazon Academy, the online learning platform for high school students in India. The Amazon Academy platform debuted early last year during the COVID-19 pandemic.
The company has been in the spotlight a lot lately due to its massive layoffs, which are confirmed to continue into next year. In a note to employees, Amazon CEO Andy Jassy wrote, “I’ve been in this role for about a year and a half now, and this is without a doubt the hardest decision we’ve made in that time (and, we’ve had some very hard times over the last few years.” decisions, especially during the heart of the pandemic).