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Amazon India begins its food retail business with a pilot in Pune

Amazon India has launched its own food retailing business with a pilot in Pune, reports The Economic Times. This development comes barely a month after Amazon India rolled out its hyperlocal grocery delivery service NOW Store, on its online grocery platform Amazon Now (formerly KiranaNow). An Amazon India spokesperson told MediaNama that the company continues to be on track to launch its food retail business in India, but didn’t divulge any details regarding the pilot or the company’s targeted timeline for the business.

The ET report mentions that the food items will be sold by Amazon Retail India Pvt Ltd. We checked on the site, and as of now, there are no food items listed for ‘Amazon Retail India.’ The report also mentions that a countrywide launch will not happen before the next quarter.

Timeline of events leading to this pilot:

July 2017: The company received government of India’s approval to invest $500 million in the food retail segment.

April 2017: The Department of Industrial Policy and Promotion (DIPP) approved Amazon India’s plan to open a wholly-owned subsidiary to stock and sell local grocery produce online.

February 2017: Amazon India applied for permission to make an investment of $500 million in the online food retailing space.

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Note that Amazon India already has two other grocery delivery services – Amazon Pantry and Amazon Now.

  • Amazon Pantry currently operates in 34 cities across the country. One can order groceries and household products, with a delivery charge of Rs 20 for Prime customers and Rs 49 for non-Prime customers. In case the order value is above Rs 599, the delivery is made free of cost. The smaller Pantry box holds up to 4 kg of products, and the largest Pantry box holds up to 15 kg of products.
  • Amazon Now currently delivers to select pin codes in Bangalore, Delhi-NCR, Mumbai and Hyderabad. It delivers things like cooking essentials, snacks & beverages, household essentials, etc within 2 hours. Check out partner stores here.

Investment in Amazon India

Last month, Amazon India received a further Rs 1950 crore from its parent Amazon Inc. (US) and Amazon Singapore. A couple of months earlier, Amazon had infused Rs 2900 crore in Amazon India. These were part of Amazon’s $3 billion investment commitment in India made in June last year.

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