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Amazon Vendor Cloudtail to Exit Food Retail to Make Room For Amazon’s Food Arm

April 06, 2019 / eoindia

One of Amazon’s largest sellers, Cloudtail India is reportedly planning to exit food retail as the ecommerce giant’s food retail arm has committed to scale selling of local food outputs.Earlier this week, Amazon has invested ₹240 crore (approximately $35 million) into its food ecommerce arm Amazon Retail India (ARIPL), which encompasses the Amazon’s Pantry, and Now categories of the US-based company. ARIPL is responsible for the sale of groceries, household and other food products in India.According to an ET report which cited sources, “Cloudtail will no more buy locally produced food and that will be entirely done by ARIPL.”Cloudtail is now reportedly onboarding independent sellers to trade imported food products that ARIPL is prohibited from selling. Government norms only permit the selling of local and packed food items on both offline and online retail channels.