Amazon has announced the discontinuation of three business ideas in India within a few days. Most recently, it was the discontinuation of “Amazon Distribution”, its wholesale website for corner shops typical of India, as a company spokeswoman confirmed to the German Press Agency on Monday. Small shops in and around the three cities of Bengaluru, Mysore and Hubli in the state of Karnataka could shop at the portal. Last week, Amazon had already informed about the end of the online learning platform “Amazon Academy” and the food delivery service “Amazon Food” in Bengaluru. The company launched both services during the pandemic with lockdowns and an online learning boom.
Amazon said it made the decision to hire as part of its annual review of its business strategy. “We are phased out of these programs to address current customers and partners and we are supporting affected employees during this transition,” the spokeswoman wrote. The firm would continue to engage and invest in India.
Many Silicon Valley companies see India as the second most populous country with more than 1.3 billion inhabitants as a potential growth market. However, Amazon is still struggling with profitability almost ten years after its market entry, as the wealth management company Bernstein recently wrote in a report. The average order value in the market is just 800 rupees (9 euros), reported the “Business Insider”, citing the report. In addition, Amazon was also faced with bureaucratic obstacles, it said. (dpa)
