Amazon Food services and Amazon Academy was launched in 2020 during the peak COVID-19 pandemic to help customers avail essential services at home and the services will be closed from December 29, 2022.
- Amazon Food service started in India in 2020.
- The company fired 10,000 employees.
- Amazon Food is shutting down from December 29 onwards.
Amazon fired thousands of employees and shut down its educational technology service in India earlier this month since the company plans to focus on its core business and end other processes.
However, the Indian market was already occupied by established companies like Swiggy and Zomato and start-ups like Big Basket and Dunzo in food delivery.
Uber has also failed to make an impact with Uber Eats. Several platforms were sold and rebranded, such as Gururgram-based Grofers, which Zomato acquired in June 2022 and rebranded to Blinkit.
At this moment, Amazon has decided to end its distribution services in India after closing its food delivery and education services.
Last week, Amazon said that it is shutting down its ed-tech service, an online platform for engineering students to prepare for competitive exams starting August 2023, and will reimburse the full fee to those who enrolled in the current academic batch.
Reports stated that due to uncertain economic conditions, the company laid off over 10,000 employees. Several Indian employees have also been squeezed by the layoffs, and some of them are turning to LinkedIn for jobs to save their H-1B visas.
The Union Labor Ministry summoned Indian representatives on the action of Amazon. However, Amazon reportedly denied laying off employees and said that the resignations were voluntary under a “Voluntary Disengagement Program”.
Sources said, “This step was taken in light of the economic slowdown, the company will focus more on its core businesses from now on.”