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The company said it does not take these decisions lightly and will phase out these businesses to take care of existing customers and partners. The reason behind the closure of Amazon Food is not clear, but it could be due to the dominance of existing players like Zomato and Swiggy.
Amazon Food is shutting down in India
Earlier Report Amazon Food will be discontinued after December 29, according to The Economic Times. The claim was made citing a communication from the company to its restaurant partners.
To recall, Amazon Food began issuing Back in May 2020, a period in which online food deliveries increased due to the COVID lockdown in India. Initially, the service is available in select locations in Bengaluru, including parts of Bellandur, Haralur, Marathalli and Whitefield. Consumers were able to access food delivery services through the main Amazon app, which featured a catalog of local restaurants and cloud kitchens. Amazon said at the time that these met the highest standards of safety and hygiene.
Amazon was planning to offer its food delivery services in various cities in India, but could not due to competition from Swiggy and Zomato.
Along with food delivery, Amazon said it is also shutting down its Amazon Academy platform in India. It was launched early last year due to a boom in virtual learning during the pandemic. The company is reportedly planning to lay off around 10,000 employees in corporate and technology roles due to the uncertain macroeconomic environment. Amazon, not just Facebook (Meta), TwitterAnd many major tech giants have gone on a massive layoff spree in the past few weeks.