Amazon India has planned to launch its online food retailing business during the festive season of Diwali according to some insider sources. The company also intends to start their own private grocery label in India similar to that of US. Amazon India plans to enter a pricing war with other retailers and online groceries with this new move. The Internet giant is constantly expanding its business into other areas like groceries and online food space for which they recently acquired Whole Foods in a breath-taking deal for $13.7 billion.
Amazon India has recently got the approval from the government for selling groceries and food in India through brick-and-mortar retail outlets across India. They are planning to invest more than $500 million in the next 5 years for expanding their food and grocery business in India. Amazon will also start its own private label soon in India through which it aims to sell packaged food items and locally produced food products from third parties.
Amazon has already launched their grocery stores in the US called Amazon Go which allows customers to automatically add products to their digital cart using the Amazon Go app. Also, they can walk out after purchase without having to wait in long queues in the billing counters like they have to in Walmart stores or other super markets. Amazon Go uses machine learning and computer vision to allow customers shop using the App and just walk out without having to wait in long checkout lines.
Amazon currently offers groceries and food items in select Indian cities through its Amazon Pantry service with partnership from 3rd party sellers. They are also offering same-day grocery delivery in select cities in partnership with other retailers like HyperCity and Big Bazaar using their Amazon Now App.
Amazon started selling baby food and coffee through their private grocery label exclusively for Prime members in the US last year. Similar to Amazon Go stores in the US which offers check-out free shopping experience, Amazon might open brick-and-mortar retail outlets in India as well. But there are numerous regulations and compliance standards which Amazon follows that will make it difficult for the company to make money through food retail business in India.