Amazon has become the first foreign e-commerce firm to start its own food retail venture in India called Amazon Retail, piloting its services in Pune. Amazon has rolled out its own food retailing business in India with a pilot in Pune, becoming the first foreign e-commerce firm to stock and sell food items directly to consumers.
Amazon had last year secured the government’s permission to invest $500 million in a wholly-owned venture retail locally produced and packaged food products through offline and online channels. It is the only global entity to have applied for the food-only retailing business, an area where the government allowed 100% overseas investment in 2016 to help producers and generate employment.
Amazon has already launched Amazon Now, an app for food and grocery items home delivery to meet the immediate demands. The app, however, is simply a meeting point between the customers and Food Bazaar/Big Bazaar and is intended for customers who want their grocery items delivered within few hours. Currently, Amazon’s warehouses in India do not store food items to meet the Amazon Now demand.