NEW DELHI: Amazon’s plans to take its wholly owned food retail business nationwide has hit a snag, with the government asking the US ecommerce giant to keep separate equipment, machinery and warehouses for its food products and not to mix or share anything with its marketplace business. Amazon has now sought clarification from the department of industrial policy and promotion ( DIPP ) whether it can share some of the warehouse staff, entry and exit doors at warehouses, barcode machines, trollies and other paraphernalia for its food-only venture with its flagship Amazon.in, a person familiar with the development said.The Seattle-based online retailer has also sought the department’s permission whether it can maintain the “segregation virtually,” the person said.Confusions over this has delayed Amazon’s plans to take its food venture nationwide by months, people familiar with the development said. The venture’s expansion now hinges on permission from DIPP, they said.An Amazon India spokesperson, in an emailed response to ET, said, “We are on track to launch the food retail business in India. We have started a pilot with restricted selection and coverage.” Amazon Retail India Pvt Ltd, the 100% owned food venture of the US giant, has been running a pilot in Pune.But, according to sources, at present the venture is merely an extension of Amazon India’s online grocery retail initiatives Amazon Now or Amazon Pantry. Now it seems the food venture cannot even share logistical machinery with the ecommerce venture.

Source: Economic Times April 23, 2018 17:37 UTC