Amazon to keep growing its grocery business in India

6 Dec 2022 , 06:37 AM

Amazon sees a “great opportunity” for its grocery business in India, despite closing its distribution network, food delivery service, and education technology units in the nation.

According to Srikant Sree Ram, director of Amazon Fresh, “We intend to keep growing the grocery business in India.” “It remains a top priority for us,”

Despite Amazon instituting an annual review process that will result in employee layoffs amid the macroeconomic unpredictability of the world, the grocery service is optimistic.

For a piece of India’s grocery and food industry, Amazon competes with Walmart-owned Flipkart, Reliance’s JioMart, and the Tata group. According to experts, this sector will be worth $790 billion by 2024, up from $603 billion in 2019. Ram described the possibilities as enormous.

Demand is increasing as e-grocery gains traction in India’s smaller cities and towns. For Amazon India, small towns and cities account for over 65% of orders and 85% of new customers. These regions are home to more than half of Amazon’s 1.1 million seller partners.