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  • Maha Kumbh 2025: Inspiring Brand Campaigns Blending Spirituality and Innovation!

    The Maha Kumbh Mela of Hindus, celebrated 144 years ago, is a religious event that is attended by millions of pilgrims from all over the world. The pilgrims are from far away to four places in India – the Holy cities of Prayagraj (Allahabad), Haridwar, Ujjain, and Nashik. Based on Hindu philosophy, the holy dip in the sacred rivers present at these places will purify the soul and grant deliverance from the worldly cycle of birth and death. Also linked with some stories from the ancient Hindu scripture and mythology is the age-old belief about the falling of drops of the divine nectar of immortality at any of these sacred spots.

    The Kumbh Mela has references dating back to the Rigveda and the 3rd century BCE. However, this festival became very powerful in the 7th century AD when King Harsha arranged grand gatherings at Prayagraj. Today, it is one of the biggest peaceful gatherings in the world, uniting culture and spirituality. Seekers from several regions attend the festival for bath-taking activities, sage lectures, and vibrant cultural exchanges, which showcase India’s cultural repertory.

    Maha Kumbh Mela offers brands an opportunity to connect with millions of people in Prayag’s mobility and shape strategies that align the campaign with the event’s inherent spiritual essence. The campaign could also provide customized add-on services, such as travel insurance, and experiential marketing. The advertising glut could be as high as INR 3,000 crores as brands fight it out in a strategic duel of brand and product choice placement and direct new customers to centers of consumption.

    Let’s explore some exemplary marketing campaigns done by some popular brands. 

    Dettol
    Eveready Industries India Limited
    Uber
    Coca Cola India
    Dabur
    Amazon India
    Vodafone Idea
    PhonePe
    Ixigo
    Park+

    Dettol

    Dettol Banega Swasth India

    The “Dettol Banega Swasth India” (DBSI) Dettol’s campaign is capitalizing on the 2025 Maha Kumbh Mela to fight for public hygiene and health for millions of pilgrims. The program will involve deploying hundreds of thousands of soaps at the food service areas to instill the habit of washing hands before and after eating. In addition, Dettol is also assisting sanitation workers by training about 15,000 staff and providing hygiene products to ensure cleanliness across the period. Health and hygiene volunteers will be on duty to help pilgrims with their orientation promoting civic involvement and hygiene promotion at the community levels. For authentic cultural resonance, the campaign utilizes street plays and puppet shows featuring hygiene messages. Dettol is a constant presence (2016) and a trusted public health partner, in line with India’s vision of a healthier country by 2047.

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    Eveready Industries India Limited

    Eveready Siren Maha Kumbh 2025

    Eveready Industries India Limited is undertaking a focused promotional drive at the 2025 Maha Kumbh Mela, to enhance this experience for the large number of pilgrims. The program entails the mounting of 13,000 LED lights at the Mela site, which provides bright illumination and enhances safety, particularly during nighttime hours. Eveready’s energy-saving lighting promotes sustainability as well as accident reduction and provides conveyance for the attendees. In this work, the brand is bestowed with a socially equitable status focused on the public good and uses its products as vehicles to represent the spiritual and cultural heart of the festival occurring. This campaign is aimed at strengthening the relationship with consumers among Eveready, creating goodwill, and furthering its brand image as an innovative company and responsible corporation.

    Uber

    In collaboration with the Airports Authority of India (AAI), Uber has launched a strategic campaign to improve the transportation services during the Maha Kumbh Mela 2025 at Prayagraj airport, with the potential for 40 crore believers to visit. The plan covers airport terminal collection areas, clearly posted with signs and assistance for smooth transfers. Uber is providing a 25% discount (maximum ₹200) redeemed for airport-to-airport travel to promote the travel. The campaign provides effective mobility options for attendees while also providing income-generation alternatives for local drivers. With its app, Uber delivers an easy-to-use system for ride bookings that is tailored to the specific transport needs of this large-scale event and reaffirms its support of reliable, community-driven services at large-scale events.

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    Coca Cola India

    Coca-Cola India - Mahakumbh 2025
    Coca-Cola India – Mahakumbh 2025

    Coca-Cola India has a significant presence at the Maha Kumbh Mela 2025, where its programs revolve around hydration, sustainability, and cultural interaction. The brand will provide access to beverages such as Coca-Cola, Thums Up, Sprite, Maaza, and Fanta every 400 meters along the event site, to retain the participant’s hydration. Special Maha Kumbh edition packaging is a semblance of India’s heritage. Hydration carts and food activations will add to the culinary experience of visitors. Coca-Cola’s Maidaan Saaf campaign fosters sustainability through the distribution of 21,500 recycled PET jackets to sanitation workers, the installation of recyclate plastic playrooms, and the use of Reverse Vending Machines for waste recycling. With immersive experiences and recycling consciousness, Coca-Cola enhances festivities and provides sustainability and community support.

    Dabur

    Dabur is utilizing diverse innovative marketing techniques for Maha Kumbh Mela 2025 to access pilgrims and visitors. The activity consists of product sampling in streetside dhabas and food joints in Prayagraj, where, for example, popular brands like Hajmola are being promoted to induce trial and knowledge of the brand. The company is fitting out oral hygiene stations with automatic toothpaste dispensers and highlighted that health and hygiene are of paramount concern for the company. Family-friendly amenities, including female baby rooms and baby care rooms with Dabur products, are incorporated to add value to the delegates’ experience. In addition, Dabur is investing in brand activation, to foster deeper cultural bonds between the brand and customers, and attempt to access the market of a growing rural population where demand for healthy and wellness products is exploding.

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    Amazon India

    Amazon India - Mahakumbh 2025
    Amazon India – Mahakumbh 2025

    In a new proposal, the footprint of Amazon India could be in Maha Kumbh Mela 2025 and one of its contributions is meant to provide relief to the pilgrims there. The company is distributing free upcycled cardboard beds in the prescribed locations of the festival (i.e., Kumbh Police and hospital staff). This sustainability-based work reuses the cardboard packaging boards from an environmentally resistant bed. Amazon collaborated with Ogilvy and specialist fabricators to provide robustness. After the event, Amazon will responsibly recycle beds unsalvageable items and donate salvageable beds to local NGOs. Director of Marketing, Pragya Sharma, pointed out this program is a part of the larger vision of Amazon India to empower communities and offer ease during mega events such as the Maha Kumbh Mela.

    Vodafone Idea

    Vodafone Idea (Vi) is launching a comprehensive campaign for the Maha Kumbh Mela 2025, aiming to enhance connectivity and user experience. The 5G company services will be rolled out to consumers by 2025 in 17 priority circles, beginning with major cities such as Delhi and Mumbai, to cater to high data needs for events. To ensure reliable connectivity Vodafone Idea is setting up more than 46,000 new network sites and modernising 58,000 existing sites. The company will offer affordable 5G plans to attract customers away from competitors. Second, Vodafone Idea is planning to expand its 4G coverage to 90% of the Indian population by June 2025. Strategic partnership and participation of the community will result in deeper penetration of the platform at the Mela.

    PhonePe

    PhonePe enhance the digital payment experience during the Maha Kumbh Mela 2025 such that they are not interrupted in their ability to use the service to access transportation, food, and lodging. With almost 47% of the UPI market, PhonePe will handle a massive volume of transactions that will ensure speed and stability. The platform also offers a cross-border payment function, which can be used to settle transactions by international tourists. Through a range of community engagement activities, PhonePe will promote digital inclusion and financial literacy. Novel abilities such as voice-enabled point-of-sale payment and artificial intelligence (AI)-based fraud prevention will add to convenience and security even more. Collaborations with local merchants ensure widespread service accessibility. Carrying out this heavy traffic scenario, PhonePe aims at enhancing the degree of the interaction among the user and the marketspace while positively supporting the financialization of India.

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    Ixigo

    Ixigo - Mahakumbh 2025
    Ixigo – Mahakumbh 2025

    Ixigo is customizing the trip for the Maha Kumbh Mela 2025 participants with a series of facilities, tools, etc. On the platform, there has been a 187% rise in train reservations for Prayagraj, which reflects an escalating demand for travel to the Mela. In particular, 57% of bookings are from single travelers, of whom 39% are female, indicating changing travel patterns. Ixigo provides functionality for comparing train schedules, making tickets, and getting actual travel information. Ixigo, partnering with Indian Railways, provides special trains or services during the Mela. On the other hand, the platform may also provide combined trip and lodging packages. Ixigo nurtures its users with safety-related travel advice and the details of the local culture, making it the traveler of choice for Mela-bound travelers.

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    Park+

    Park+ is leveraging advanced parking solutions to enhance the Maha Kumbh Mela 2025 and is the official parking partner. The platform will provide the city of Prayagraj’s first smart parking system based on artificial intelligence (AI), offering the pilgrims an easy method of reserving and prepaying for parking spaces through the Park+ application. Coupled with FASTag payments, the system offers a fast and cashless payment system. The app will be used to offer navigation at more than 30 parking lots that are government-approved and have a total of 500,000 parking locations. Park+ will also offer 24-hour security, electric vehicle charging, medical assistance, food and drink service, and bathroom facilities. Using predictive AI, the architecture will enhance parking space allocation. By working together with Indian Oil, users will be offered fuel-price discounts, thus providing a stress-free and easy-flow parking experience.

    Conclusion

    In conclusion, Maha Kumbh Mela 2025 provides a novel chance for a wide array of brands and service providers to improve the lives of millions of pilgrims. Companies such as Dettol, Coca-Cola, Amazon India, Vodafone Idea, PhonePe, Ixigo, and Park+ are adopting new ideas and projects around health and connectivity, ease, and sustainability in life. Using technology and community involvement, these companies not only aim to address the possible challenges of logistics but also to add new value to the cultural and religious meaning attached to the congregation. In line with these plans becoming a reality, these methods are intended to guarantee a seamless and meaningful journey for the participants, which is a natural consequence of the importance of cross-communication and innovation in the planning of large-scale events.

    FAQs

    Why is 2025 Kumbh special?

    This special Maha Kumbh Mela marks the completion of 12 Kumbh Mela cycles, making it a once-in-144-years event. It is set to span 44 days and is estimated to draw approximately 400 million visitors.

    What are Maha Kumbh 2025 dates?

    The dates for Maha Kumbh 2025 are Mon, 13 Jan 2025 – Wed, 26 Feb 2025.

    How often is Maha Kumbh Mela?

    Maha Kumbh Mela is approximately every 6 and 12 years.

  • Amazon India Pays INR 450 crore to Purchase Lodha’s 38-acre Plot in Palava, Close to Mumbai

    For more than INR 450 Cr, Amazon India has purchased a 38.18-acre plot of land in Palava, close to Mumbai, from Lodha Group, a company known as Macrotech Developers, with plans to construct a hyperscale data centre.

    According to a media report, the previously approved floor space index, which has a development potential of around 4.16 million square feet, will be made available to Amazon Data Services India, a division of Amazon India.The report also stated that when the sale agreement was executed and registered, Amazon Data Services India paid Macrotech Developers more than INR 396 Cr of the entire agreed sum. Once a few requirements are met, the remaining amount of more than INR 54 Cr will be paid.

    Amazon Expanding its Data Centres Globally

    According to data analytics firm Propstack, which was quoted in the story, the corporation also paid INR 27 Cr in stamp duty for the deal’s November 12 registration. This development coincides with Amazon‘s plans to build more data centres worldwide. In order to modernise and expand cloud infrastructure in India to match the increasing demand, Amazon Web Services (AWS), the company’s cloud division, announced more than a year ago that it will invest $12.7 billion in data centre infrastructure by 2030.

     In light of this, in September, AWS was in talks to invest $2 billion in Telangana to increase the state’s capacity for data centres. Two data centre infrastructures have been opened by AWS thus far, one in the Hyderabad region and one in the Mumbai region.

    Expansion is Aligned with India’s Growing Digital Economy

    According to sources, the business has made significant investments to expand its data centres in Saudi Arabia, the UK, Italy, and other nations. The rapid growth of India’s digital economy, where the majority of people have access to digital learning platforms, social media, e-commerce, digital transactions, online gaming, and streaming services, is driving up demand for dependable data processing and storage capabilities, which explains the growing interest in data centres.

    Global tech companies have made significant investments in data centres, and both Google and Microsoft are interested in purchasing land in India. In addition, the data centre market in India is anticipated to rise steadily at a compound annual growth rate (CAGR) of 5.84%, reaching an estimated $9.27 billion by 2027.

    The property registration documents obtained by CRE Matrix show that in November 2024, Equinix India Pvt Ltd, a US-based data centre company, paid INR 155 crore for 5,597 sq m (1.38 acres) of land in the Chandivali neighbourhood of Mumbai. According to the records, the land lot and the building, which has a total built-up area of 5,386 square meters, have been purchased.

    In the first half of the year, the nation’s overall data centre stock increased by 21%, according to a report by Savills India. With a commanding 54.9% of the total capacity, Mumbai was in first place, followed by Chennai (12.3%), Bengaluru (8.2%), and Pune (7.2%).

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  • Due to Cost-Cutting Measures, Amazon India will Relocate its Corporate Headquarters to Bengaluru

    In an effort to save money, Amazon India is relocating its headquarters from the World Trade Centre in Bengaluru’s northwest to a site near the airport, according to various media reports. In a 30-story building owned by Brigade Enterprises, the e-commerce and cloud computing giant currently utilises half a million square feet of office space on 18 floors. The Bengaluru airport is 15 minutes away by car from Amazon’s new headquarters. A third of the INR 250 per square foot rent that the corporation paid for the WTC office is probably going to be lost. According to the reports, the relocation would start in April and be finished by 2026.

    Current Office’s Dynamics

    Amazon‘s present location is a part of Brigade Gateway, the first integrated complex in the city, which also includes a hospital, a five-star hotel, 1,200 residential apartments, and a shopping centre. The report suggests that the 5,000 personnel of the World Trade Centre are encouraged to reside in the vicinity. Amazon employs 300 people, and they occupy one-fourth of the apartments.

    A spokesperson told the media that the company is thrilled to be relocating to a new campus, a cutting-edge building intended to promote improved cooperation and provide an unmatched employee experience.

    Nevertheless, the staff has been dissatisfied with the company’s new office, which is situated 20 kilometres away, as a result of the prolonged commute time, which is approximately 80 minutes during peak traffic.

    Recent Developments in Amazon India

    There is currently a top leadership turnover in Amazon India. Manish Tiwary resigned as India’s country manager in August, and Samir Kumar, a seasoned member of the company, took over in September. Kumar will oversee Amazon’s consumer businesses in the Middle East, South Africa, and Turkey in addition to the Indian market.

    The Indian marketplace division of the e-commerce giant, Amazon Seller Services, announced on November 11 that its operational revenue for FY24 increased by 14% to INR 25,406 crore, while its net loss decreased by 28% to INR 3,469 crore. Revenue growth was slower than the growth rates observed during the pandemic period, although it still exceeded the 3% increase in FY23.

    While Amazon India’s wholesale division, which sells goods and services in bulk to retailers and distributors, saw a slight dip, the company’s logistics and payments divisions reported a 7-9% increase in operational income and somewhat reduced losses for the fiscal year that ended in March 2024. As part of its global employment reduction announced in 2023, the retailer let go of 500–1,000 workers in India. Amazon announced that it would lay off more than 18,000 workers in January 2023. In 2024, the firm laid off hundreds of workers across several sectors, including Twitch, Prime Video, and Audible.

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  • Sales of Premium Products on Amazon India Increases Significantly during Festival Season

    According to a senior corporate official on 2 November 2024, the Diwali season sale during the Amazon Great Indian Festival (AGIF) 2024, which started on September 27, was driven by demand for high-end products across a variety of categories, including televisions, smartphones, and major appliances.

    During the Amazon Great Indian Festival (AGIF) 2024, the business saw a ten-fold increase in sales of Apple iPads and a five-fold increase in sales of Samsung tablets, according to Amazon India Vice President Saurabh Srivastava, who spoke to a media agency.

    Premiumization was one obvious trend that existed. Upon closer inspection, a distinct tendency of premiumization is seen in everything from televisions to fashion and beauty items, gaming laptops, and kitchen and household appliances. Consumers are favouring more high-end goods. Srivastava reiterated that this is not exclusive to major cities.

    Sale of Television Sets Dominated AGIF 2024

    About 30% of the segment’s total unit sales were large-screen TVs, and demand for these devices increased tenfold year over year, with Samsung, Xiaomi, and Sony emerging as the most popular TV manufacturers.

    Apple and Samsung are high-end tablet manufacturers. Samsung tablets increased five times year over year (YoY), whereas Apple tablets increased ten times. Large appliances include washing machines, refrigerators, and air conditioners, of course, but high-end models like front-loading washers, side-by-side refrigerators, and air conditioners larger than 1.5 tonnes increased 30% year over year, according to Srivastava. Watches, perfumes, handbags, Korean beauty, jewellery, luggage, and other luxury categories saw a 400% increase in the fashion and beauty sector.

    Comparison of AGIF 2024 with AGIF 2023

    The Amazon Great Indian Festival 2024 received 140 crore customer visits, the biggest ever. According to Srivastava, more than 85% of clients came from non-metropolitan cities. Amazon India reported a 50% year-on-year increase in B2B clients making their first purchase from Amazon Business.

    AGIF 2024 has set new milestones for seller success, with more than 70% more vendors achieving a crore in sales than the previous year. The online marketplace expanded its rapid delivery capabilities, delivering over 3 crore products to Prime members across India on the same or next day, a 26% rise from the previous year.

    Amazon Raises Content Creator Commission During the Festive Sale

    Earlier, Amazon in order to further increase it awareness among the Indian masses, it had increased its normal commission earning rates for select categories within its network of over 50,000 influencers ahead of the festive sale.

    According to its site, for active creators who collaborate with Amazon, the updated commission structure offers influencers a significant rise ranging from 1.5x to 2x across a wide range of product categories, including fashion, beauty, and personal care products.

    At that point, Director of shopping initiatives for India and emerging markets, Zahid Khan stated that Amazon is giving creators the tools and incentives they need to succeed during the festive season and beyond by drastically raising commission rates across important categories, the company is providing additional incentives through various programs to further back these creators.

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  • Over One Lakh Seasonal Jobs Created by Amazon India Just Ahead of the Festival Season

    To meet the heightened demand that occurs throughout the holiday season, Amazon India announced on 12 September 2024 that it has established more than 110,000 seasonal job opportunities across its operational network. According to a statement released by the corporation, these opportunities include both direct and indirect employment prospects across the country, especially in cities such as Mumbai, Delhi, Pune, Bangalore, Hyderabad, Kolkata, Lucknow, Chennai etc.

    A total of over 1.1 lakh new employees have been brought on board by the company to enhance its fulfillment and logistics network and to guarantee that it will be able to meet the increasing demand without any problems. While talking with the media, Abhinav Singh, Vice President of Operations at Amazon India, revealed that a lot of these fellow workers will continue to work for Amazon even after the holiday season is over, and many others return to work for Amazon year after year. According to the statement, the vast majority of these newly hired employees have already been brought on board.

    Empowering Women and Special People

    Amazon also claimed that it has engaged thousands of women to work as associates and also it has hired close to 1900 disabled people to work inside its existing network. In a statement, the Union Minister of Labour and Employment and Youth Affairs and Sports, Mansukh Mandaviya, expressed his admiration for the efforts that Amazon and other corporations are making to create employment possibilities that are inclusive while also ensuring the welfare of their employees.

    “It is heartening to see that the company is prioritising the well-being of its employees by implementing programmes that give priority to their safety, healthcare, and educational support,” stated Mandaviya.

    “Additionally, it is great to note that the company is hiring a considerable number of women and people with disabilities for these positions,” he added further.

    Amazon India Focuses on Associate Wellbeing

    Amazon India has instituted a variety of initiatives to support the well-being of its associates, including the recently launched Project Ashray, which provides dedicated resting points for delivery associates in Delhi NCR, Mumbai, and Bengaluru.

    Moreover, Amazon has specific welfare programmes such as Sushruta, which provides truck drivers with comprehensive healthcare support through early detection, diagnosis, and health camps across key regions, and the Pratidhi Scholarship, which offers scholarships to associates’ children for quality education, amongst other initiatives of a similar nature.

    Network of Amazon India

    Amazon India has established a robust fulfilment and shipping network that spans the whole country, which is assisting more than 1.4 million merchants in meeting the needs of customers located all across the country. 

    The company has fulfilment centres located in fifteen different states, which provide 43 million cubic feet of storage space for seller inventory. Additionally, the company has sortation centres located in nineteen different states, and it has a network of nearly two thousand delivery stations that are operated by Amazon and partner companies.

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  • Introducing Rufus, Amazon’s Genai-Powered Assistant, Now Available in Beta in India

    Rufus, a new conversational shopping assistant driven by generative artificial intelligence, has been introduced to the Indian market by the eCommerce retail giant Amazon.

    On the Amazon India mobile app, the assistant will initially be made accessible in beta mode to a restricted group of consumers. In the following weeks, it will be made available to a wider audience.

    The purpose of Rufus is to improve the overall experience of shopping online by providing personalized product recommendations, shopping list assistance, comparisons of product categories, and insights gleaned from consumer evaluations.

    Characteristics and Powers of Rufus

    Rufus is well-versed in Amazon’s enormous product catalog and can draw information from various sources on the internet to provide answers to a wide variety of questions posed by customers.

    Users can receive assistance from the AI assistant at a variety of points throughout their purchasing journey. As an illustration, it can be of use in conducting general research such as “things to consider when purchasing a washing machine” or in conducting particular product comparisons such as “Should I get a fitness band or a smartwatch?”

    In addition, it provides recommendations that are geared to specific queries, such as “What are the best dinosaur toys for a child of five years old?” or “What are the best gaming laptops?”

    Engagement With Users and Their Experiences

    Customers can communicate with Rufus by using a chat conversation box that is situated in the lower right-hand corner of the Amazon mobile client.

    After being engaged, Rufus gives users the ability to investigate questions that have been suggested, ask follow-up questions, and obtain thorough responses.

    Additionally, the assistant can support particular product-related inquiries while perusing product detail pages. This makes it simpler for customers to obtain complete information without having to leave the shopping interface. Customers can dismiss Rufus and return to the conventional search results by swiping down the chat box if they require it.

    Clicking on “What do customers say?” on a product description page provides a handy summary of consumer reviews. For example, when a customer is looking at a product’s information page, they can ask Rufus questions like “Is this jacket machine washable?” or “Is this cordless drill easy to hold?” and get instant replies. Using information from listings, reviews, and community Q&As, Rufus will produce replies.

    Rufus helps consumers make smarter purchases by generating responses based on pertinent information from all around the web and Amazon.in. Generative AI is in its infancy, hence it may not always produce accurate results. To make Rufus more useful over time, Amazon’s tech team will refine responses and enhance its AI models. In addition to the more traditional “thumbs up” or “thumbs down” ratings, customers also can submit more detailed, free-form comments.

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  • Swiggy and Amazon Are Negotiating an ECommerce Partnership on Instamart

    In a possible deal involving its rapid commerce division under Instamart, Amazon India has reportedly approached Swiggy, which is preparing for an IPO, according to three people familiar with the situation. This news follows closely on the back of Swiggy’s secretly submitting draft documents with Sebi for an initial public offering (IPO) of INR 10,414 crore ($1.25 billion), one of the biggest for a modern digital company.

    According to one of the sources mentioned earlier, “Amazon has swooped in with interest to either pick up a stake in the ongoing pre-IPO placement or a buyout proposal for Instamart… but there are multiple roadblocks at the moment.”

    According to reports, there is currently no formal offer in place, and for the talks to progress further, the Seattle headquarters of Amazon will need to act quickly. According to these sources, the current offer structure is so complex that the preliminary conversations may not result in a transaction.

    How Swiggy Is Placing Its Pricing Cards for This Deal?

    Zomato, Swiggy’s main competitor, has a market valuation of about INR 1.9 lakh crore, therefore the former is probably going to undercut its rival by a significant margin. The fast food delivery services Swiggy and Zomato do not have their valuation. But in April, Goldman Sachs estimated that Zomato’s rapid commerce unit, Blinkit, was worth $13 billion.

    The US eCommerce giant’s Indian division has reportedly been developing its rapid commerce program for months, which may explain why Amazon is interested in Swiggy’s Instamart. Since Amazon does not provide this service in any of its worldwide markets, they stated that launching a distinct sector for fast deliveries would necessitate global clearance.

    To lower its shareholding of longtime backer Prosus, Swiggy has been selling secondary holdings in the private market for about $9 billion. This tech investor, who is South African and Dutch, now has 33% of the company and is reducing its holdings to less than 26% to avoid being considered a promoter when Swiggy goes public. Additionally, last week, the meal delivery service announced a $65 million ESOP buyback, providing liquidity to workers.

    Why Similar Deals With Other Companies Didn’t Go Through?

    It has been reported by several different media outlets that Flipkart attempted to get into a similar agreement with Swiggy; but, due to a mismatch in valuation between the two companies, no announcement was made. Swiggy had approached high-net-worth people and businesses such as WhiteOak, Motilal Oswal, Orchid Asia, Malabar, and Enam Group to sell its secondary stakes.

    Business research firms 1Lattice and Datum Intelligence believe that the value of India’s eCommerce business increased by 18-20% in the first half of 2024, with food sales increasing by more than 38% due mostly to a dramatic surge in fast commerce. Quick commerce currently accounts for over 40% of all online grocery sales. Most notably, the top three saw a 230% increase in category growth from 2021 to 2023.

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  • Flipkart’s Quick Commerce Revolution: Reshaping India’s Online Retail Landscape

    India’s leading digital commerce entity Flipkart is working to venture into the fast-paced world of quick commerce to meet the burgeoning demand for rapid delivery of everyday essentials.

    Flipkart has recently unveiled its latest initiative of same-day delivery service now available in 20 major Indian cities. 

    This strategic move underscores Flipkart’s unwavering dedication to elevating customer satisfaction, and convenience and to revolutionize the eCommerce landscape.

    “We are committed to meeting evolving customer expectations and delivering excellence in value, selection, and speed, with more initiatives expected on this front in the coming months,” Walmart-backed Flipkart said in a statement. 

    This new initiative of same-day delivery will be for customers across cities including Ahmedabad, Bangalore, Bhubaneshwar, Coimbatore, Chennai, Delhi, Guwahati, Hyderabad, Indore, Jaipur, Kolkata, Ludhiana, Lucknow, Mumbai, Nagpur, Pune, Patna, Raipur, Siliguri and Vijayawada.

    It would cover products like mobiles, essential items, electronics, home appliances, fashion, books, and lifestyle goods. The customers will get their products delivered before midnight if they place their orders by 1 pm without any extra charge.

    Flipkart Likely To Launch Quick Commerce Services

    Key Players

    Future Prospects

    Key Players

    Flipkart’s introduction of same-day delivery service represents a significant advancement in the Indian eCommerce market.

    “We have invested in cutting-edge technologies, leveraged data analytics, and harnessed insights on demand patterns to ensure that we are well-equipped to anticipate and fulfill demand the very same day. I must acknowledge the hard work and dedication of our teams who have tirelessly contributed to making this vision a reality,” said Hemant Badri, Senior Vice President, Head of Supply Chain, Customer Experience & ReCommerce Business, Flipkart Group.

    In the past year, quick commerce has surged into a billion-dollar industry with platforms like Blinkit, Zepto, and Swiggy Instamart poised to exceed USD 1 billion in revenue in the financial year 2023-24.

    The surge in quick commerce has captured Flipkart’s interest, prompting the eCommerce giant to enhance its emphasis on the grocery sector. 

    As quick commerce constitutes approximately 40% of online grocery delivery, it is increasingly fueling growth. Flipkart’s renewed focus on grocery aligns with a broader transition away from conventional eCommerce models centered on sales and discounts.

    As of now, these apps are providing quick commerce to consumers in major Indian cities:

    Blinkit Swiggy Instamart Zepto
    Started operations in January 2022 August 2020 April 2021
    Revenue as of FY 2023 (in Rs crore) 724 3221 2024
    Revenue as of FY 2022 (in Rs crore) 236 2036 142
    Funds raised for quick commerce (in U.S.$ million)
    US$ 1 mn = Rs 8.2 cr    		 569 700 361
    Current market share (in %) 40% 37-39% 20%

    It’s essential to acknowledge how its rivals have also expanded into quick commerce to meet evolving customer demands.

    Here’s how some of Flipkart’s competitors have ventured into quick commerce:

    Amazon India

    Amazon has been a key player in the Indian eCommerce sector, and it has also delved into quick commerce to enhance its delivery capabilities. The company offers Amazon Prime Now, which provides ultra-fast delivery of essentials, groceries, electronics, and more within a few hours. 

    Reliance Retail

    Reliance Retail, through its digital arm JioMart, has been rapidly expanding its presence in the e-commerce space. Leveraging Reliance’s extensive network of physical stores and warehouses, JioMart offers quick delivery of groceries, household essentials, and other daily items. 

    BigBasket

    As a leading online grocery platform in India, BigBasket has capitalized on the growing demand for quick delivery of essential items. The company offers express delivery services for groceries and household essentials, ensuring that customers receive their orders within a few hours. BigBasket has the quick commerce feature BB Now too to get groceries delivered in 15-30 minutes.

    Blinkit

    Grofers now Blinkit has rebranded itself to reflect its commitment to rapid delivery. With its extensive network of local partners and warehouses, Blinkit ensures that customers receive orders within a few minutes, making grocery shopping seamless. 

    Blinkit has begun selling home appliances, puja essentials, Eid special offerings like prayer mats, thobe kurte, ‘sehri’ and ‘iftar’ needs, ‘Holi’ needs, sweets, colors, thandai, bakery items, meats, seafood, cosmetics, mobiles and accessories, electronics, baby care products and much more. 

    Swiggy and Zomato

    While primarily known for their food delivery services, Swiggy and Zomato have also entered the quick commerce space by offering delivery of groceries, medicines, and other essential items. 

    Zepto

    Zepto is also the name of a quick commerce platform that enables businesses to offer fast delivery services for groceries, bakery products, kitchen essentials, paan corner (betel leaf), tobacco, health and hygiene, toiletries, clothing, and other essentials. Zepto provides tools and infrastructure to facilitate within minutes delivery of goods to customers’ doorsteps.

    Dunzo

    Dunzo has become synonymous with hyperlocal delivery, with its Daily service taking it a step further by guaranteeing delivery within 19 minutes. From groceries to medicines to food from nearby localities to letters to clothes from the nearest boutique, Dunzo Daily fulfills all your daily needs with lightning speed.

    While Flipkart maintains a strong foothold in the market, achieving revenue growth poses a continual challenge. With the emergence of competitors such as Zepto and Blinkit, there is a critical need for Flipkart to establish itself within the quick commerce sector. 

    As per media reports, Flipkart is also weighing options to expand into quick commerce with the introduction of dark stores. Dark stores are like mini warehouses designed for online orders.

    Flipkart is also planning to buy Dunzo Daily. Despite having raised approximately USD 500 million in funding, Dunzo has struggled to secure additional investment and meet its staff payroll. 

    The hyperlocal delivery company has lost ground to newer competitors like Zepto, Swiggy, and Zomato’s Blinkit, leading to a drop in its market position.

    Flipkart, valued at over USD 32 billion, is considering buying Dunzo, known for its local delivery skills. This move could be smart, but talks might take a while because Dunzo has ties to Reliance Retail, its main investor owning a 26% share. 

    Flipkart wants to be careful about what it buys, especially considering Dunzo’s connections, according to an article published by Business Insights Now on February 23.

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    Future Prospects

    The prospects of quick commerce, including Flipkart’s role, are exceptionally promising, driven by evolving consumer preferences, technological advancements, and market dynamics. 

    Flipkart, along with other quick commerce platforms, will capitalize on increasing smartphone penetration, internet connectivity, and digital payment systems to broaden its reach across diverse demographics and geographic regions.

    By 2028, it is anticipated that the number of users in the quick commerce market in India will reach 56.4 million users. The user penetration rate, which currently stands at 1.8% in 2024, is projected to rise to 3.8% by 2028.

    Meanwhile, the quick commerce market in India is anticipated to reach a revenue of USD 3.3 billion in 2024, with a projected compound annual growth rate (CAGR 2024-2028) of 27.42%. This growth trajectory is expected to propel the market volume to USD 8.8 billion by 2028.

    Revenue of Quick Commerce Market in India
    Revenue of Quick Commerce Market in India

    Conclusion

    In summary, Flipkart’s expansion of its same-day delivery service epitomizes its dedication to setting new benchmarks of excellence in the eCommerce arena. 

    With a focus on speed, convenience, and customer satisfaction, Flipkart reaffirms its position as a trailblazer in India’s digital commerce revolution.

    As the quick commerce market continues to evolve and expand, Flipkart’s strategic initiatives and dedication to customer satisfaction will shape its trajectory in the years to come. 

    The future holds endless possibilities, and Flipkart stands ready to embrace the opportunities that lie ahead, driving forward the evolution of online retail.

    “Many believe Amazon and Walmart-owned Flipkart will continue to dominate the future of Indian eCommerce. In my humble opinion, I would not bet against the hometown teams at Zepto and Zomato,” said a LinkedIn post by Paul Hudson, Founder and CIO, of Glade Brook Capital.

    Glade Brook Capital, which supported Zepto in Mumbai last year, also invested in Zomato’s parent company, Blinkit, back in 2019.

    FAQs

    In how many cities will Flipkart provide the same-day delivery service?

    Flipkart will provide same-day delivery service in 20 major Indian cities including Ahmedabad, Bangalore, Bhubaneshwar, Coimbatore, Chennai, Delhi, Guwahati, Hyderabad, Indore, Jaipur, Kolkata, Ludhiana, Lucknow, Mumbai, Nagpur, Pune, Patna, Raipur, Siliguri and Vijayawada.

    What will be the revenue of the quick commerce market in India in 2024?

    The quick commerce market in India is anticipated to reach a revenue of USD 3.3 billion in 2024, with a projected compound annual growth rate (CAGR 2024-2028) of 27.42%. This growth trajectory is expected to propel the market volume to USD 8.8 billion by 2028.

    Who are the competitors of Flipkart in the field of quick commerce?

    The competitors of Flipkart in quick commerce include Dunzo, Amazon India, Reliance Retail, BigBasket, Blinkit, Zepto, Zomato, and Swiggy.

  • The Future of Ecommerce Industry in India

    With growing internet penetration and disposable incomes, the people of India are experiencing a massive change in their shopping habits. People from all fronts are using their smartphones to buy products and items. With the big three — Amazon, Walmart, and Alibaba, entering the Ecommerce sector of India, the market is slowly maturing and expanding its footprint to the most remote locations across the country. This market for Ecommerce in India is further estimated to witness another transformation with the spread of the all-new ONDC concept that is still new in its approach and promises to make ground-breaking changes.

    According to an analysis, the Ecommerce Industry in India grew from 4% of the total population in 2007 to around 40% in 2017, clearly indicating the rise of the internet era in the world’s fastest-growing economy. The growth of the Ecommerce market in India is expected to further be registered at around $188 billion by 2025. This industry would again rise to reach $350 billion by 2030, as per the latest statistical reports. This internet boom is directly proportional to the emergence of Ecommerce in India and other internet-based domains.

    WIDGET: leadform | CAMPAIGN: undefined

    This post analyzes the current scenario and the future of Ecommerce in India.

    Ecommerce Industry In India
    Growth Of Amazon In India
    Growth Of Flipkart In India
    Other Ecommerce Players In India

    Ecommerce Industry In India

    Projected Ecommerce Revenue of India from 2017-2027
    Projected Ecommerce Revenue of India from 2017-2027

    This success story started in 2007 with the inception of India’s most successful startup, Flipkart. Initially, companies found it tough to encourage people to shop online but with advancing technology, logistics, and payment methods supported by various offers and sales, people slowly drifted to this convenient mode of online shopping. Internet penetration and easily available data, fuelled by the low costs were and continue to be the most prominent factors encouraging this trend.

    Ecommerce in India is expected to touch $200 billion by 2025 from the figure of around $40 billion in 2017. The internet economy, on the other hand, is expected to hit $1 trillion by 2030, majorly riding on the Ecommerce wave. Seeing this potential, Amazon, Walmart, and Alibaba started heavily investing in India and building a strong presence. Various domestic players like Snapdeal, Shopclues, Infibeam, etc. are also a part of this organized and exponentially growing Ecommerce segment in India. Though some of them might not be standing tall enough at the present moment, they always have a chance to bounce back though. Also, as a result of the domain of Ecommerce being broad enough to nourish many other subdomains, the Indian ecosystem of Ecommerce has seen the growth of both men and successful women entrepreneurs, with many more opportunities ahead.      

    Growth Of Amazon In India

    Annual Net Sales Revenue Worldwide of Amazon from 2004 to 2021
    Annual Net Sales Revenue Worldwide of Amazon from 2004 to 2021

    Amazon expanded its footprints in India by promising to invest $5 billion, and until now it has pumped in more than $6.5 billion. These investments are being used for expanding its portfolio by bringing various sellers onto its platform, building and leasing warehouses for storage, improving logistics, offering heavy discounts to acquire new customers, and foraying into new verticals like grocery and payments wallet.

    In 2017, Amazon’s founder Jeff Bezos stated that Amazon’s app was the most downloaded shopping app in India. Moreover, the company’s loyalty program—Amazon prime—was adopted in India at a much faster rate than in any other country. Its international losses as of April 2018 were $622 million and the revenue was $14.08 billion, whereas a year back the figures were, $481 million and $11.06 billion respectively. Amazon.com had $469.80 billion in revenue in 2021. Amazon is also focusing on improving its smart AI-based speaker, Amazon Echo. Alexa, Amazon’s voice-controlled personal assistant, is being trained to understand and focus on the Indian dialect and vernacular languages.

    Amazon now has options for Hindi, Tamil, Telegu, Kannada, Malayalam, Bengali, and Marathi on its website and app to conquer customers from tier-2, tier-3, and rural areas where English is not widely used or taught. With a growing focus on improving customer service through setting up various fulfillment centers and faster logistics, Amazon is working to counter its local competitor Flipkart which was bought by Walmart and Paytm Mall. It is going to provide drone-based delivery very soon. With its increasing investments despite heavy losses, Amazon strongly believes that today’s investment of Re 1 will yield returns of Rs 100 tomorrow.

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    Growth Of Flipkart In India

    Revenue of Flipkart Private Limited between Financial Years 2014 and 2022
    Revenue of Flipkart Private Limited between Financial Years 2014 and 2022

    On the other hand, Flipkart is a successful domestic Ecommerce player in India. Initially, it had its share of struggles in bringing sellers and buyers on its platform while dealing with the challenges of logistics and maintenance of warehouses. But with grit and hard work, Flipkart has been successful in bringing a revolution that changed the face of the startup ecosystem in India.

    It was the first Ecommerce company to introduce the system of cash on delivery, being mindful of the reluctance people faced while using their cards online. It also accomplished the task of setting up its own logistics unit, Ekart, along with various warehouses for storage and faster deliveries. Just like Amazon, Flipkart’s founders also started their startup by selling books online and slowly scaled their startup to various segments. It has also acquired various startups like Myntra and Jabong in the fashion segment, and PhonePe to delve into the mobile wallet industry. As of FY2017, it held around 45% of the total market in India, with losses of about Rs 8771 crores and revenue rising by 29% to Rs 19,854 crores. Though the market share figures changed slightly, Flipkart still maintained a lead over its counterpart Amazon in terms of market share, which was reported to hold 31.9% market share over the US-based Amazon, which held 31.2% of the market share in 2020.  

    Flipkart also launched its smartphone segment under the name ‘billion’, and also forayed into the electronics segment under the name MarQ. It is even venturing into the untapped potential behind the furniture segment. The basic reason behind launching an in-house brand is to attain profitability; many experts say that in-house brands will ultimately become the backbone of Ecommerce. Success was not easy for Flipkart. Ideas like trying to turn Flipkart into a mobile app completely didn’t go down with customers, and there were other failure stories as well.

    Flipkart was acquired by the American-based supermarket giant Walmart for $16 billion in 2018. This led to a growth in Flipkart’s valuation, which reached $21 billion. This deal was a win-win situation for both as Walmart got a 77% stake in expanding itself into the world’s new Ecommerce battleground, and Flipkart got ammunition in the form of investment and equity to counter Amazon. It eventually began to launch numerous programs like the loyalty program, and Flipkart Plus, where users are provided with free delivery and points. It also has a Flipkart affiliate program where you can become a partner and earn money. These points can be further used to redeem offers on platforms like Bookmyshow, Zomato, Hotstar, etc.

    Flipkart launched its refurbished marketplace, 2gud.com, after parting ways with eBay India. With the competition getting tougher every day accompanied by growing market size, it remains to be seen whether Flipkart will be able to maintain its supremacy. No matter what, Indians will always be proud of Flipkart as it changed the way for the average Indian shop.

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    Other Ecommerce Players In India

    The third dimension of Ecommerce in India is Paytm Mall and other small players. After the fall of Snapdeal, Paytm Mall (started in 2017) was quick enough to conquer the third spot in the industry. Focusing on its Online to Offline model (O2O model), which allowed consumers to avail of online discounts and offers in Offline partner stores, it established a niche in this particular segment.

    Alibaba and Soft Bank invested $356 million in the company. Alibaba took a stake of 28.34% and Soft Bank 19.86%. After this valuation of the company reached $2 billion. It reported annual gross sales worth around $3.5 billion in FY18 and earned operating revenues of $102.97 million in FY19. It reported $34.72 million in revenue from operations and a $17.48 million loss in FY22.

    Short-term visions, lack of experience, and strategic setbacks led to the fall of the company. Alibaba and Ant Financial sold their stake at just $5.17 million and backed out of the company. According to reports, its valuation dropped from $3 billion to $13 million in March 2022. Paytm Mall can make a comeback through ONDC.  

    Another small and promising player was Shopclues, which had been successful in attracting customers from Tier-3 and Tier-4 towns, clearly indicating its difference in thinking from Flipkart and Amazon. It consisted of various small sellers on its platform, selling quality goods at a cheaper price. This business model attracted people from various rural areas who had low disposable incomes compared to their urban counterparts. According to a ROC 2018 filing, it was revealed that Shopclues’ revenue increased by 60% to Rs 180.3 crores, and losses came down by a massive 40% to Rs 332.65 crores. It also hinted at profitability in the coming quarters. However, the promising unicorn, which turned the fourth Indian unicorn startup in January 2016, led by Radhika Ghai Aggarwal and Sandeep Aggarwal, headed only towards nothing.    

    Conclusion

    Many people from the industry feel that the current Ecommerce ecosystem in India (consisting of both the marketplace and inventory type) is less than 5% of its actual potential. With this industry growing exponentially, many small and big players feel that there are more horizontals and verticals which are yet to be explored and organized. Myntra, IndiaMart and Nykaa are among the fastest-growing Ecommerce players in India. The Ecommerce segment will be imperative in pumping up the Indian economy and boosting employment rates.

    FAQs

    What is the future of Ecommerce in India?

    As per predictions, the Indian Ecommerce market will increase by 21.5%, reaching $74.8 billion in 2022, and it will reach $350 billion by 2030.

    What is the present scenario of Ecommerce in India?

    Ecommerce has transformed the way business is done in India. The Indian Ecommerce market is expected to grow to US$ 200 billion by 2026 from US$ 38.5 billion as of 2017. Much of the growth for the industry has been triggered by an increase in internet and smartphone penetration.

    What is the market share of Ecommerce in India?

    Growing at an exponential rate, the market value of the Ecommerce industry in India is approximately $88 billion in 2022.

    Which is the biggest Ecommerce company in India?

    Amazon India is the biggest Ecommerce company in India.

    What are examples of the Ecommerce industry?

    • Amazon
    • Flipkart
    • Snapdeal
    • Myntra
    • Shopify
    • Nykaa
    • Alibaba Group

  • Amazon’s Most Notable Acquisitions That Made It a Giant Global Conglomerate

    Amazon is one of the most influential economic and cultural forces in the world, as well as one of the most valuable brands. It focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. Beyond that, it has permeated our lives deeply, especially in the last couple of years. It is the American multinational technology company, Amazon.com, Inc. Amazon founder Jeff Bezos is, currently, one of the most recognizable names on the planet.

    He founded the company on 5th July 1994 from his garage in Bellevue, Washington. It was, initially, an online marketplace for books. Amazon quickly expanded into a multitude of product categories earning the moniker ‘The Everything Store. Initially named Cadabra, Inc. Bezos renamed it to Amazon as he wanted the company to be as ‘exotic and different’. In his initial days, Bezos reportedly told a journalist – “There’s nothing about our model that can’t be copied over time. But you know, McDonald’s got copied. And it’s still built a huge, multibillion-dollar company. A lot of it comes down to the brand name. Brand names are more important online than they are in the physical world.”

    The Journey
    Amazon Acquisitions
    Reasons for Acquisitions

    The Journey

    As a new start-up Amazon only sold books online because of its worldwide demand, low unit price, and large number of titles available in print. Within the first couple of months, the business grew to sell its books to all 50 states and over 45 countries. In October 1995, the company announced its intention to issue an Initial Public Offering (IPO). Within the next three years, Amazon was sued first by Barnes & Nobles in 1997 for claiming itself as the world’s largest bookstore and then by Walmart in 1998 for allegedly stealing trade secrets by hiring Walmart executives. Eventually, both lawsuits were settled out of court and Amazon implemented stricter internal policies and restrictions.

    Initially, Amazon’s growth and profit were nominal leaving stockholders wary of investing or even the company’s survival prospects. When the dot-com bubble burst in 2001, Amazon not only survived the bloodbath but went on to post a modest profit in the fourth quarter of that year. This was a boost of confidence that eased the investors. From that point on, the unconventional business model of Jeff Bezos has not stopped growing till today. In 2020, Amazon generated sales worth USD 386 billion which were 38% higher than its sales in 2019 in the US alone.  Amazon’s Marketplace sales represent an increasingly dominant portion of its e-commerce business.

    Amazon Acquisitions

    Within the time span of the last two decades, the tech behemoth has acquired or invested in at least 128 companies across the world. These companies belong to a wide plethora of industries from healthcare to entertainment, helping diversify their core revenue. It has also provided Amazon with inroads into better understanding their customer’s likes, dislikes, and preferences. The top ten Amazon Acquisitions by value are –

    Company Name Acquired On Acquired For
    Whole Foods Market Jun 16, 2017 $13.7 billion
    Metro-Goldwyn-Mayer May 26, 2021 $8.5 billion
    Zoox Jun 26, 2020 $1.2 billion
    Zappos Jul 22, 2009 $1.2 billion
    Ring Feb 27, 2018 $1 billion
    PillPack Jun 28, 2018 $753 million
    Twitch Aug 25, 2014 $970 million
    Kiva Systems Mar 19, 2012 $775 million
    Souq Mar 27, 2017 $580 million
    Quidsi Nov 8, 2010 $545 million

    Whole Foods

    Revolutionizing the domain of grocery shopping, Whole Foods is an American multinational supermarket chain. Amazon acquired Whole Foods in 2017 for $13.7 billion. The acquisition added 400 physical stores to the set of e-commerce stores that Amazon already had. Additionally, the acquisition gave a huge impetus to the tech giant in the domain of grocery shopping, which was further used by Amazon to push people to purchase their Prime membership in return for the wonderful offers given.

    MGM Studios

    Founded in 1924, MGM Studios, or Metro-Goldwyn-Mayer, is a California-based studio that has produced many popular films, many of which have won academy awards as well. Some of their popular films include the James Bond franchise, the Rocky series, Robocops, Fargo, Silence of the Lambs, etc. In 2021, Amazon acquired MGM Studios for $8.5 billion. The deal was completed in March 2022.

    Zoox

    Zoox is a startup that develops self-driving technology with the aim of proving a full-stack solution for ride-hailing. In order to provide automatic self-driving capabilities, they use their own software and artificial intelligence, which has become a unique innovation in the arena of self-driving vehicles. They specifically focus on custom vehicle design, which they believe will be able to overcome the problems posed by self-driving vehicles. Amazon acquired the startup in 2020 for $1.2 billion.

    Zappos

    Zappos was founded by Tony Hsieh in 1999 as an online shoe seller after identifying the difficulties with which customers grappled due to the unavailability of the right size and desirable models. In 2009, Amazon bought Zappos for $1.2 billion.

    Ring

    Ring is a video doorbell and security camera maker that is worth more than $1 billion. They sell their products in the US, UK, and Europe. After establishing themselves as a reputable company in their area, they headed in the direction of the Internet of Things and in-home delivery spaces. In a deal that was valued at more than $1 billion, Amazon acquired Ring in 2018.

    PillPack

    It is an American pharmaceutical company that was founded in 2013 by TJ Parker and Elliot Cohen. By integrating novel technology into the midst of the business, the company saw tremendous growth over a short span of time. They were a step ahead of their fellow companies by demarcating their customers’ medications by dose and delivering them to their doorstep. In 2018, Amazon acquired PillPack for $753 million, and the company changed its branding from “PillPack, an Amazon company,” to “PillPack by Amazon Pharmacy.”

    Twitch

    It is a platform that allows users to stream their games to their followers so that they can watch them play the game. It was launched in 2011, focusing on live video gamers. In 2014, Amazon acquired the company for $970 million. Amazon’s purchase was a very prudent decision, foreseeing the pathbreaking interventions that the gaming industry and metaverse can have on humanity. With a vision to think differently, Jeff Bezos said that they were looking forward to offering better services for the gaming community.

    Kiva Systems

    It is a Massachusetts-based company that manufactures mobile robotic fulfillment systems. They innovated novel approaches in the distribution chain with the help of database systems and automated guided vehicles, which are also called bots. In 2012, Amazon acquired Kiva Systems for $775 million. Today, Kiva Systems is known as Amazon Robotics. This change came into effect in August 2015.

    Souq

    Launched in 2005 in Dubai, Souq was the largest e-commerce platform in the UAE. In 2017, Amazon acquired it for nearly $580 million. This acquisition gave Amazon tremendous anchoring in the Arab world through Souq’s 45 million visitors every month. By integrating Souq’s customer base and Amazon’s technical backing, customers can enjoy a wide range of product selections and seamless delivery.

    Quidsi

    Quidsy is an e-commerce company that was founded by Marc Lore, Vinit Bharara, and Wei Yan in 2005. This US-based firm aimed at revolutionizing the online shopping experience by improving every aspect of it, including 1-2 day delivery, the novel e-commerce experience, and excellent customer service. In 2010, Amazon acquired Quidsi for $545 million.

    Other notable Amazon acquisitions since 1998 include IMDb, Alexa Internet, Twitch Interactive, etc. Some of the companies that Amazon has acquired over the years are now defunct.

    Very recently, Amazon acquired iRobot for approximately USD 1.7 billion. iRobot is the company that makes Roomba vacuums. With this acquisition, Amazon has increased its footprint in individual households and deepened its penetration in the market.

    Reasons for Acquisitions

    Over the years, Amazon has grown from strength to strength and now is a global presence with deep market penetration. Its popularity has grown during the pandemic and the name has become synonymous with retail shopping.

    There are various reasons why a company like Amazon acquires or invests in different companies.

    Economies of Scale

    ‘Bigger is better is the ideology behind an acquisition for economies of scale. Larger companies enjoy better cost savings and competitive advantages than their smaller counterparts.

    Market Share

    This is the most common motive for an acquisition. Apart from reducing the competition, it also gives the company an immediate increase in market share and also a boost to its sales.

    Acquire New Expertise / Technology

    Over time, newer technologies get introduced introducing newer ways to work. Therefore, it becomes necessary for companies to also evolve and embrace the changes. One way to do it is to acquire companies that provide this technology and expertise.

    Similar Synergies – Creating Value

    Many times, the logic of acquiring a new company makes more sense than the numbers. This is clearly visible in Amazon acquiring Whole foods and trying to bring the power of ecommerce to traditional food retail.

    Geographical Diversification

    This is a huge value driver in acquisitions. Acquisitions are the much-preferred way to expand geographically as the company can acquire a ready cash-generating entity with a ready business platform. It is also financially beneficial to the higher costs of setting up a new operation from scratch.

    Vertical Integration

    This type of acquisition creates a new addition to the value chain of a company. It reduces dependency on third party suppliers and vendors.

    Conclusion

    Over the years, Amazon has successfully integrated various products into its portfolio by acquiring several companies for one or more reasons as mentioned above. Amazon’s sprawling eCommerce empire is a result of far-sightedness, a futuristic approach, and an adaptable business model.

    With the world shifting to the online retail platform, Amazon shows no signs of slowing down. It has, in fact, expanded its operations and offers a wide network of services.

    FAQs

    What is Amazon’s largest acquisition?

    The acquisition of Whole Foods Market by Amazon in 2017 is the biggest company take-over by Bezos’s corporation to date, with a whopping tag price of 13.7 billion U.S. dollars.

    Among its 12 subsidiaries, Amazon has AbeBooks.com, Audible, CamiXology, Fabric.com, IMDb, PillPack, Shopbop, Souq.com, Twitch, Whole Foods Market, Woot!, and Zappos.

    Did Amazon have any mergers?

    Amazon has made 98 acquisitions and 95 investments. The company has spent over $ 46.19B on the acquisitions.

    Who is Amazon’s biggest competition?

    Its biggest retail competitors are Alibaba, eBay, Walmart, JD, Flipkart, and Rakuten.

    What is Amazon’s net worth in 2022?

    Amazon’s net worth as of November 25, 2022, is $952.94B.