Amazon India : Important Distribution business shutdown

Like many other major global companies of the world Amazon India too is affected. Post Covid 19, where the entire global economy has been a major slowdown and we see many countries of the world in a phase of recession and inflation.

With countries like UK falling into the realm of a political crisis, and the reason being non other then economic reformation or instability. In a period of months UK saw two new Prime Ministers. And it is still not certain as the new PM is under immense pressure to make his country’s economy stable.

Just a week earlier we have also seen Meta releasing many of its employees out of their job. All this are major global phenomenons in the field of economy and business.

As we notice, no country or economy is on boom or stable at this juncture where the world stands on the edge of a global economic collapse, and weaker nations like Pakistan almost facing a bankrupt situation and is surviving through loans.

In India too we see a price rise, every essential commodity that a common consumer uses in his daily needs are expensive and petroleum facing the highest price in the country’s history.

In this way Amazon India too, in an attempt, also a part of its global exercise, to curb or cut is costs decided and announced to shutdown its wholesale distribution business in India. This is also a part of their annual strategic planning process.

The official statement

As to what we have decoded from an official company spokesperson, they say that this shutdown is a part of their annual operating planning review process that they have made a decision to discontinue Amazon Food.

It should be noted that Amazon India started its food delivery service amid the Covid Pendemic in the month of May 2020.

The company has also rejected any claims regarding the removal of any of its people in India.

The Amazon India Distribution service

The ambitious distribution service of Amazon India was a vicious attempt to empower the local so called Kirana or priority stores, along with pharmacies and departmental stores in the country.

This services were available in some parts of Bengaluru, Mysuru and Hubali.

This services was started at a time when the country was curbed in lockdown’s which was a result of the dreaded Coronavirus.

Amazon India

Possible reasons for the shutdown

Distribution service sector is ever growing in India. Thus making ones position in this vast market and also making ones position stable is a huge task.

There are many local giants who are actually holding good positions in its share in the distribution, for example, Reliance Jio.

India is a country where every year there are dozens of promising startups in the distribution sector are arising. This also adds to the competition.

Other reasons being the poor performance of the Global Economy as a whole.

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The Consequences of the shutdown

The consequences can be quite obvious and clearly known to all. Amazon being a big global company and shutdown of its any kind of services even though minor, does have an effect on the particular country.

Job insecurities are very much in cards when some services are shutdown. Even though minor, but it will be very much unavoidable.

Frequently Asked Questions

When was the distribution services started by Amazon India?

The distribution services were started in May 2020.

The Amazon India distribution services were applicable in which places?

The services were active in parts of Bengaluru, Mysore and Hubali

Why is Amazon India shutting down its distribution services?

According to spokesperson, the services are shut down to curb or cut is costs. This is also a part of their annual strategic planning process.

To conclude

This article tries to cover up the recently announced statement regarding Amazon India shutting down its distribution services in India.

The article covers information’s for our readers knowledge and information regarding what services are actually shut down and what affects will it bring.

However small a services is, but transition from fully functional to a complete shutdown, does have affects ad it will be visible in a matter of time.

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