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Amazon to discontinue food delivery business

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Global e-commerce giant Amazon has decided to discontinue its food delivery service Amazon Food in Bengaluru. While the company did not comment on the closing date, reports suggest that the shutdown will come into effect on December 29, 2022.

“At Amazon, we’re always experimenting and investing in new ideas to delight our customers. We also continually evaluate the progress and potential of our products and services to deliver customer value, and we regularly make adjustments based on those assessments. As part of our annual operating planning review process, we have made the decision to discontinue Amazon Food, our pilot food delivery business in Bengaluru. We don’t take these decisions lightly. We are discontinuing these programs in a phased manner to take care of current customers and partners and we are supporting our affected employees during this transition,” said an Amazon spokesperson.

Committed to India

The spokesperson added that Amazon remains committed to India and will continue to invest across those areas where it can bring value to customers including grocery, smartphones and consumer electronics, fashion & beauty, as well as its B2B offerings such as Amazon business.

Amazon’s food delivery service was piloted in India closely after the exit of Uber Eats in 2020. Amazon Food used to offer Indian restaurants lower take rates (7 -12 per cent) than local food delivery companies (16-20 per cent). 

Yesterday on November 24, Amazon also announced the shutdown of its edtech offering Amazon Academy in a phased manner, starting August 2023. The existing batch of Amazon Academy will complete its test preparation module by August. Further, the company will refund the full fee to those enrolled in the current academic batch. However, Amazon Academy users will have access to full course material online for extended period of an year, until October 2024.

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Published on November 25, 2022

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