Amazon’s win-win formula ahead of food delivery launch; Direct selling companies unhappy with ecommerce players

Amazon is preparing to enter the competitive food delivery business in India. The Indian Direct Selling Association (IDSA) wants to approach the government against ecommerce players. 

Amazon prepares for food delivery platform launch

US-based retail giant Amazon is taking service-entrance route ahead of launching its food delivery services to win over restaurant owners. This move is expected to help it establish its base across India, Moneycontrol reports.

Amazon is delivering groceries, disposable cutlery, cleaning products and other daily needs to over 100 restaurants at a discounted price in Bengaluru, Delhi and Pune, the report said.

Amazon plans to expand the number of restaurants to at least 7,000-8,000 across the country in the next three to four months.

It will be competing with the likes of Zomato, Swiggy, Dunzo, FoodPanda and UberEats, among others, in this segment.

Direct selling body to ask govt to curb e-commerce regulations

The Indian Direct Selling Association (IDSA) is unhappy with ecommerce players selling their products. The association is planning to ask the government to intervene in the matter, the Economic Times reports.

Rini Sanyal, chairperson, IDSA said that they will insist on regulations prohibiting ecommerce companies from selling products of direct selling companies.

Sanyal added that the companies were not only selling the products in an unauthorised manner but also at deep discounts, causing losses to the direct selling companies, ET reported. 

Direct selling companies like Amway, Oriflame and Modicare had moved to the Delhi Court against ecommerce players in July.

The court, in July, passed an interim stay order restraining the e-commerce players like Amazon, Flipkart, Healthkart and Snapdeal from displaying, advertising and offering the sale of products of direct selling entities without their consent, it added.