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FDI e-commerce rule: Amazon's food business, Future Retail stake acquisition in limbo

January 15, 2019 / timesnownews
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The government’s revised foreign direct investment (FDI) policy for the e-commerce sector poses a serious challenge to Amazon’s existing food-only retail business as the US-based online retail behemoth will discontinue selling food on its website Amazon.in from February 1, the Economic Times reported citing unnamed people aware of the development.The financial daily highlighted that it would be a huge setback as Amazon was the sole foreign retailer to have pledged investment up to USD 500 million in the food retail business after it opened up in mid-2016. Furthermore, the latest e-commerce FDI regulations have created obstacles for Amazon to buy a stake in Future Retail. “Amazon Retail India Pvt Ltd (ARIPL), which is a seller of foodstuff on Amazon.in, will stop selling post-February 1 in a bid to comply with the new marketplace regulations,” one of the persons with direct knowledge of the development told ET.