Amazon is closing its Distribution operation in India. The company appears to be in a situation where it is forced to close many of its services in India, where it has invested over $7 billion over the past decade.
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On Monday, the American e-commerce giant announced that it is shutting down Amazon Distribution, the wholesale website available in small neighborhood stores located in the cities of Bengaluru, Mysore and Hubli.
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The Amazon Distribution service was created to help kiranas (small, usually family-run stores that sell groceries and other miscellaneous items), pharmacies, and department stores secure inventory from the e-commerce giant.
The move follows two other businesses the company has shuttered — a food delivery and an online learning platform called Academy. Company officials have not yet given a reason for the decision to close the wholesale business. Amazon’s restructuring of its global operations may have played a role in the decision.
Amazon has announced a series of changes it will make in South Asia. Many believe that the company is unfortunately being forced to reduce its operations in the region for some reason. The company has invested more than $6.5 billion in local business , but in recent months it has faced various issues such as the departure of several senior executives.
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Amazon has not yet made any statement regarding whether it intends to close other businesses in the country, but we are expected to see what happens next.
Information source: techcrunch.com
