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After edtech and food delivery business, Amazon to wind up its distribution services in India

After its edtech and food delivery business, Amazon to wind up its distribution services in India
Amazon Distribution is available in parts of Bengaluru, Hubli, and Mysore.


American multinational tech giant Amazon is reportedly closing its wholesale distribution business in India. The news comes after the company recently announced that it will shut down its edtech platform and food delivery business in the country.


According to a report by Business Today, the move to shut down the company’s distribution services is made as Amazon plans to focus on its core business amid the global economic slowdown. The service is available in parts of Bengaluru, Hubli, and Mysore and employs roughly 50 people. 


The move is not surprising as some media reports, over the weekend, suggested that the company will shut down its food delivery platform as well. According to a report by The Economic Times, the tech giant will discontinue its food delivery business on December 29, 2022. “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 per the media report.


Further, the company assured to meet all payment requirements and other obligations while assisting with the transition process. The restaurant partners will have also access to all Amazon tools and reports till January 31, 2023, the report noted.


At the onset of the pandemic in 2020, the e-commerce major started its food delivery platform as a competition to Zomato and Swiggy in India. The company tested the pilot in selected pin codes in Bengaluru. The service was gradually expanded to 62 pins across the South Indian city.


In addition to the distribution services and food delivery platform, the company last week announced to wind up Amazon Academy, an online edtech platform for high schoolers in the country. The virtual learning platform tutored students preparing for competitive exams like JEE, BITSAT, VITEEE, SRMJEEE, and MET. The company claimed that the study material and mock tests were specially crafted by industry experts.


Amazon Academy was also launched in 2020 when virtual services, like education and food delivery, were booming because of the imposition of physical movement restrictions to curb the spread of coronavirus. However, not just Amazon Academy but several other edtech firms like Byjus, Vedantu, etc are reeling under pressure as the country emerged from the pandemic leading to the reopening of offline schools and coaching centers.


This coupled with an expected recession next year has led many companies to cut down their cost by laying off several employees. In its largest job cut ever, Amazon will let go of around 10,000 employees in phases.