Famous for being very competitive, the Indian food market does not easily allow many companies to stay put. Giants like Uber also failed the market or were rebranded like Grofers from Gurugram was taken over by Zomato in June 2022 and renamed as Blinkit.
Amazon, which fired 10,000 employees too could not hold up with its Amazon Food. It was launched in May 2022 and at that time, the customers wanted the company to add food delivery and other essentials. Though at that moment, the Amazon app had a section for groceries and medicine. This service is now going to shut from 29th December, 2022.
Amazon told Economic Times that the company took the decision after a lot of deliberation. It has to provide for the customers a large selection of products at a great value and at the convenience of the customers. When a company discontinues a service, it does it in an organised manner so that it can continue to take care its customers and also try to support the affected employees.
Amazon, as a part of the annual operating planning review process has already shut down its edtech service in India where Byjus held a major share.
During the pandemic period, Amazon Food and Amazon Academy made an appearance with the intention of helping customers to avail these essential services at home. However, the Amazon Food was unable to stand in front of the already established Swiggy and Zomato and also start-ups like Big Basket and Dunzo.
When launched two years ago, Amazon wanted to rival Swiggy and Zomato. While these companies catered all over India, Amazon Food provided services only in Bengaluru and a few other places and so failed to make an impact.
