The e-commerce war in India is set to get hotter, with Amazon planning on investing $5 billion in the Indian market. It plans to make the country the biggest market outside the US. Last year, CEO Jeff Bezos had visited India to announce $2 billion investment in its Indian operations. The e-commerce company has used this to expand its network of warehouses and data centers to better compete against the likes of Flipkart and Snapdeal. Also Read - Amazon Great Freedom Festival begins: Top deals on iPhone XR, Samsung Galaxy M42, iQOO Z3, moreAlso Read - Amazon Great Freedom Sale: Best deals on OnePlus 9 Pro, Mi 10i 5G, Galaxy M42, and more
Amazon is now set to use the $5 billion war chest to reportedly launch its Prime service, as well as the Amazon Instant Video (AIV), Economic Times reports. Amazon Prime is currently only available in the US, wherein subscribers are entitled to free two-day shipping with no minimum order size, unlimited streaming of movies and videos on Amazon Instant Video, and a service called Kindle Owners Lending Library, wherein Kindle owners can borrow one free e-book from Amazon s library. It costs $99 (approximately Rs 5,946) per year and a discounted $39 (approximately Rs 2,342) for students. This is in line with what was reported earlier this year, and in essence will take on Flipkart First, which was introduced last year. Also Read - You can now ask Alexa to find nearest COVID vaccine or testing centre
Amazon Instant Video too is only available in the US, and is essentially a streaming service for movies and TV shows. Subscribers can stream movies or shots on Amazon Fire TV, Fire HDX, Fire HD, iPad, PS3, Xbox, Wii, Wii U, Roku, on hundreds of TVs, set-top boxes, Blu-ray players, and on the Web.
This too is in line with earlier reports, which claimed that Amazon India planned to launch a music and movie streaming service. The company had appointed Nitesh Kripalani, former executive vice president at Multi Screen Media, which runs Sony Entertainment Channels, to get content for the services. Kripalani is reportedly in talks with various music labels, as well as companies like Yash Raj Films and Eros International for their titles.
To say the Indian e-commerce scene is booming would be an understatement of sorts. According to a Morgan Stanley report, the Indian e-commerce market could be worth around $137 billion in the next five years.
The top three e-commerce companies have raised around $5 billion this year, led by Flipkart raising nearly $3 billion. Snapdeal received $627 million investment from Japan s Softbank, and plans on investing around $200 million on logistics. China s Alibaba bought a 25 percent stake in Paytm for around $575 million (Rs 3,600 crore approximately), and is reportedly planning on upping the stake to 40 percent with an additional investment of $600 million (Rs 4,000 crore).