Amazon Closes Amazon Distribution, a B2B platform in India In 2 Weeks Amid Government Probe Into Mass Resignations
November 29, 2022: Amazon India said it will shut down Amazon Distribution, a B2B platform that caters to local kirana stores, pharmacies and department stores, operating in three cities in Bengaluru, Mysore, and Hubballi.
E-commerce giant Amazon is set to close a third business in India, as the company embarks on CEO Andy Jesse’s cost-cutting plan to pull the company out of the global recession.
“We do not take these decisions lightly. We are phasing out this program to take care of existing customers and partners,” a company spokesperson said in a statement.
Amazon said it is shutting down Amazon Distribution, a complete e-commerce website that delivers groceries and stationery to local kirana stores, pharmacies and department stores, operating in three cities: Bengaluru, Mysore and Hubli.
“We offer a wide range of products at competitive prices and next-day delivery at your doorstep. As a member, you can buy thousands of items for resale at competitive prices and in bulk at any time of the day, pay through various payment options available, get a GST bill for your order and get convenient and reliable door-step delivery. The next day,” the company describes on the Amazon Distribution website.
The development comes amid a Labor Ministry probe into the company, which wants to ascertain whether the recent resignations led to retrenchments, which are against the ministry’s policy.
It’s Amazon’s third exit in a week from a business that doesn’t want to move into the high-growth Indian market, where the company has invested $7 billion in verticals over the past decade.
The company had earlier announced the shuttering of its food delivery business Amazon Food and exam preparation platform Amazon Academy.
The Jeff Bezos co-founded conglomerate entered the food-delivery vertical in India about three years ago. It launched Amazon Food in India in May 2020 in parts of Bengaluru.
The company later expanded across the city, operating additional restaurants. The decision to shut down the food-delivery business follows a recent decision to shut down its fledgling edtech unit by next year.
“After careful evaluation, we have decided to shut down Amazon Food effective December 29, 2022. 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 that you continue to fulfill those orders,” Amazon told restaurant partners.
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