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Amazon now a vendor on Amazon.in; starts food retailing in Pune

Amazon is also the only global company to have applied for the food-only retailing segment.

twitter-logoBusinessToday.in | February 25, 2018 | Updated 17:52 IST
Amazon now a vendor on Amazon.in; starts food retailing in Pune
PC: Reuters

As it turns out, e-commerce giant Amazon is soon set to turn into a one-stop shop. The company has rolled out its own food retailing in Pune, becoming the first foreign e-tailer to sell food items directly to customers. The food products are being sold by Amazon Retail India Pvt. Ltd. This roll out comes after Amazon was granted permission by the Indian government to invest USD 500 million in a wholly-owned venture to sell local produces and packaged food items through online and offline mediums.
 
Amazon is also the only global company to have applied for the food-only retailing segment. The government had allowed 100 per cent foreign direct investment in 2016 food-only retailing to increase jobs and help the producers. The government had however asked Amazon to keep separate management and offices for their food-retailing business, also keeping it visibly distinct from its marketplace business that can only act as an aggregator and not sell products directly to consumers.

"Amazon is now a vendor on Amazon.in and is currently operating in Pune," The Economic Times reported.

An Amazon India spokesperson told the newspaper that the company is on track to launch their food-retailing business in India. Amazon will, however, take a quarter to roll out this service nationwide.

Indian e-commerce giant, Flipkart had launched Supermart in November 2017 that delivers grocery to its customers. American retail giant, Walmart, is in talks with Flipkart to buy a stake of more than 40 per cent in the company. If this happens, then Flipkart as well as its Supermart would be given a very crucial leg-up in their competition with Amazon.

Grocery e-tailers Grofers and BigBasket which are funded by foreign investors have also been given a similar nod as Amazon

 

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