Amazon awaiting FDI approval to start delivery of groceries in the country

Amazon is expected to start delivering groceries online, through its Amazon Fresh service, once it receives FDI approval from the Government. The company started the service in Seattle, US in 2007 with doorstep delivery of a limited selection of groceries, and is expected to start selling farm produce, lentils and milk in India, to be sourced fresh produce and staples directly from farmers as part of the Amazon Fresh initiative, once it receives the approval.

The company already sells fresh vegetables, fruits and dairy products through its hyperlocal venture Amazon Now in Mumbai, Delhi, Hyderabad and Bengaluru. It sources the products from the supermarkets based on screening, and packs them in special temperature-controlled boxes for delivery to the consumer household.

Saurabh Srivastava, Director FMCG, said that “Amazon India will continue to invest heavily in the fast-moving consumer goods (FMCG) business for a few more years. We will maintain the entire supply chain directly and right sourcing will be the key. The company is instead seeking to drive a habit change for consumers buying FMCG and grocery products online. Our focus is on the long term. Of course, as our order volumes increase, we would drive economies of scale into the business. But we don’t want to focus on just one city to make it profitable right now and would rather expand our offering”.