Analysed as a cost effective step, Amazon shutters third business in India
Amazon, an E-commerce venture is on a cost cutting trip. In past few days it is been observed that Amazon is laying off their employees, from India and US. A recent movement from Amazon is being analysed as a cost-effective step. They recently shut down their third business in India as their CEO Andy Jason claim cost reduction plan to drive the company out of a global slowdown.
Third Business shut down
“We don’t take these decisions lightly. We are discontinuing this programme in a phased manner to take care of current customers and partners,” a company spokesperson said in a statement.
Amazon is discontinuing their E-commerce distribution website which includes supplying stationary and groceries to local vendors, pharmacies and departmental stores located in Bengaluru, Mysore and Hubballi.
This is Amazon’s third call off in a week from businesses they do not want to lead in the high-oriented Indian market. The company invested $7 billion across verticals during the last decade.
The company earlier sweep under the carpet their food delivery business called, “Amazon Food” and exam preparatory platform “Amazon academy”.
The food delivery business was started by Jeff Bezos in India. It started nearly three years ago on May 2020 in some parts of Bengaluru. They later expanded their business in other parts of the city providing services to restaurants. However, the shutting down decision of food delivery business has led to another veil of budding academy business.
“After a careful evaluation, we have decided to discontinue Amazon Food from Dec 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.
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