Amazon sees a great opportunity in India, where the company already sells $ 8 billion worth of goods annually through its marketplace. Only Flipkart can boast of a greater online market share in the country. While Amazon has expressed interest in buying a stake in Flipkart, it seems very likely that Wal-Mart will take over a large part of the company in the near future.
A cash injection for his rival would certainly be a challenge for Amazon. But core North America and cloud computing continue to produce billions of free cash flow that Amazon could use to fund efforts in India and other emerging markets. India is particularly rewarding, with analysts predicting that online revenue will rise from $ 30 billion last year to $ 200 billion in a decade.
After this setback, Amazon plans to invest more in groceries, which is already the largest product category on Amazon, measured by the number of units sold in India. Amazon’s head in India, Amit Agarwal, expects to launch food delivery within two hours in the foreseeable future. Food could pave the way for broader e-commerce growth in the region.
Building on the tab
More than two years ago, Amazon started supplying food in the city of Bangalore, southern India, and since then, food sales in all regions have grown rapidly. Flipkart has failed to launch a food service since 2015 and launched a pilot program late last year. Meanwhile, Amazon has built a strong base of online shoppers. Continue reading “How Amazon wants to crack India”