Global ecommerce giant Amazon launched its own food retail business in India with a pilot in Pune. With this new venture, Amazon became the first foreign ecommerce firm to enter food retailing in India.
The company has started stocking food items and selling them directly to consumers. “Amazon is now a vendor on Amazon.in and is currently operating in Pune,” said a spokesperson associated with Amazon’s food business.
The food products are sold by Amazon Retail India, Private Limited. According to reports, Amazon may take at least three months to expand the business nationwide.
The company had got government’s nod to sell locally produced and packaged food products through online and offline channels last year. As part of the move Amazon had invested $500 million to begin the venture.
Amazon is the only global player to have applied for the food-only retailing business, an area where the government allowed 100% overseas investment in 2016 to help producers and create employment opportunities.
Amazon’s move comes at a time when its global rival Walmart is in discussion with homegrown e-tailer Flipkart for a possible partnership.
Apart from Amazon, foreign-funded BigBasket, Grofers and Supr Daily have also received similar approval for food retailing.