Parul
Amid an exercise to wind up certain verticals as part of a global exercise to cut costs, Amazon on Monday announced it shut down its wholesale distribution business in India.
The e-commerce major is discontinuing Amazon Distribution, it’s wholesale e-commerce website available in some parts of Bengaluru, Mysore and Hubli. The company earlier shut down its food delivery and online learning platform called Academy in India.
“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 launched its distribution service to empower local Kirana stores, pharmacies and department stores in the country.
Last week, Amazon said it is shutting down its food delivery business in India, a day after it announced it shut down its Edtech vertical in the country.
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Amazon started its food delivery service in India in May 2020.
“As part of our annual operating planning review process, we have made the decision to discontinue Amazon Food,” said a company spokesperson.
The company has denied laying off people in India. Meanwhile, the Union Labour Ministry had summoned Amazon India to appear before the Deputy Chief Labour Commissioner in Bengaluru on Wednesday in connection with the alleged forced terminations by the company.
“You (Amazon) are therefore requested to attend this office with all relevant records in the matter either personally or through an authorised representative on the aforesaid date and time without fail,” the Ministry’s notice.
The development comes after a complaint filed by the employee union Nascent Information Technology Employees Senate (NITES) in which it has alleged Amazon of violating labour laws.
