Amazon will close the food delivery business next month, the company could not compete with Swiggy, Zomato

Global e-commerce company Amazon is shutting down its food delivery in the country next month. The company was facing tough competition from Swiggy and Zomato in this business. In the same month, Amazon decided to shut down its edtech unit as well. The company has informed its restaurant partners to discontinue this service from December 29.

This unit of the company is called Amazon Food. Restaurant partners have been assured to clear payments and other contractual obligations by December 29. In the letter sent by the company Told Restaurant partners will continue to have access to the company’s tools and reports through the end of January. “This decision means that you will no longer receive orders from customers through Amazon Food after this date. You will continue to receive orders until then, and we expect you to fulfill those orders,” the letter to restaurant partners states. ”

To compete with Swiggy and Zomato in the country, Amazon Food was started from Bengaluru and later expanded. Recently, the Labor Ministry had asked the company to respond to the retrenchment of workers in the country. Amazon plans to reduce the number of workers on the global label. For this, the company has offered Voluntary Separation Program (VSP) to a large number of workers in India.

On the complaint made against the company by the Nascent Information Technology Employees Senate (NITES), the Labor Ministry has ordered Amazon’s unit in India to be closed. notice Have given. NITES alleges that the layoffs being done by the company are illegal and unethical. Amazon has about one lakh workers in the country. NITES said it has received complaints from Amazon workers that the company is forcing them to voluntarily resign. For this he has also been sent to VSP. In the complaint given to the ministry, it has been said that the retrenchment being done by the company is in violation of the Industrial Disputes Act. Amazon has about three lakh workers globally and about three percent of these can be laid off.