Amazon to Enter the Grocery Market with AmazonFresh

Amazon is now ready to take its business game to the next level in India with the introduction of its new arm, AmazonFresh, which will be delivering fresh fruits, vegetables and frozen foods across the country. The concept which was first rolled out in Seattle will have a direct impact on the grocery business of Walmart-owned-Flipkart.

From packaged foods, personal care and home care products to fruits, vegetables, dairy and meat, a wide range of items will be available at AmazonFresh. The project is being launched only in a few places of Bangalore and will be taken to Mumbai, Delhi and Hyderabad, gradually.

Prime Now (formerly known as Amazon Now), an express delivery platform in India will be performing deliveries for the brand. Other than India, AmazonFresh is currently available only in selected cities which include Tokyo, London, Berlin and New York. The company has been selective about AmazonFresh due to the prevailing challenges in delivering ‘fresh’ foods.

Amazon has allocated $500 million for the food retail business in India. However, the sales would be carried out majorly by third-party sellers. This move came at a time when companies are looking to expand their grocery exposure. Big players like Grofers and Big Basket have already captured a large chunk of the market and have also secured investments from Softbank and Seoul-based Mirae Asset.

AmazonFesh will be available on Amazon’s mobile application and website.