Amazon gains approval to stock and sell groceries in India
Approval means Amazon can stock food itself as well as selling via partners
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Online retail giant Amazon has secured approval to stock and sell food and groceries in India, potentially expanding its business in the fast-growing economy where it is in a pitched battle with home-grown rival Flipkart.
Amazon confirmed winning government approval for its plan to sell food products, but it declined to provide further details.
Separately, a source familiar with the matter said Amazon planned to invest $500m (£387.6m) in the food segment, over and above the $5bn it had already committed to investing in India.
Cheaper smartphones, increasing internet penetration and steep discounts have led to a surge in domestic online shopping for everything from gadgets to clothes and food items in India.
Still, mom-and-pop stores account for the biggest share of grocery sales, offering organized players huge growth potential.
Currently Amazon offers food products in India via Amazon Pantry, where retailers including joint venture Cloudtail sell various products. It also offers same-day grocery delivery on its Amazon Now app through a tie-up with Indian retailers Big Bazaar, Star Bazaar and Hypercity.
Amazon did not comment on whether its new investments would affect any of its existing tie-ups, or its Cloudtail joint venture.
Venture-funded Flipkart, whose backers include Tiger Global, Tencent Holdings and Microsoft, also plans to move into the groceries space, company executives have said.
Amazon last month announced plans to buy upscale US grocer Whole Foods for $13.7bn.
Reuters
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments