The e-commerce marketplace Flipkart is downing shutters on Jabong and the portal is now redirecting the users to the Myntra website. Walmart-owned Flipkart had acquired Jabong for $70 million in 2016, but saw a close to 13 percent drop in app downloads for the brand in December 2019, media reports said on Wednesday.
Earlier in July 2019, Flipkart had said that it had started to cut a significant chunk of its marketing expenditure in Jabong and redirecting its users towards Myntra by providing discounts. As per the reports, the Myntra app saw a 41.18 percent rise in downloads and 31.87 percent rise in daily active users (DAUs).
Flipkart had acquired fashion e-commerce platform Myntra in May 2014. Soon after the Walmart acquisition in November 2018, Flipkart merged both Myntra and Jabong, which gave way to 150 employees being laid off.
On the other hand, Flipkart recently announced that it’ll expand the supply chain infrastructure with opening two of its largest fulfillment centres (FCs) in Farrukhnagar, Haryana which will generate more than 5,000 jobs in the region. Spread across 9 lakh square feet, the fulfillment centres will help Flipkart significantly scale up its supply chain infrastructure in north India.
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The company currently employs more than 10,000 people in Haryana across its supply chain and has created thousands of indirect jobs in the state. During the last festive season, Flipkart’s FCs in Haryana served up to 40 percent of the total number of orders from across India.
Written with inputs from IANS