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I'm sure you've heard the news that Amazon has made an offer to take a big chunk of Flipkart. On the surface, it makes sense considering India is the third largest country by population and Amazon is currently battling with them for market share.
But beyond that, it makes even more sense because Walmart is interested in buying them as well...and we all know Amazon doesn't like being beat by Walmart.
Just a year ago Amazon lowered their minimum order size to receive free shipping to $25 after Walmart had dropped their free-shipping minimum to $35 from $49.
Then, in 2017 Walmart launched free 2-day shipping without membership. In return, during holiday Amazon announced free same-day and one-day shipping in over 8,000 cities.
As Scott Galloway once highlighted, Amazon likes to pull everyone underwater as deep possible because they know they have the largest oxygen tank (capital/patience).
The bigger theme to me going forward is this: Will Amazon continue to try and build their own presence in other counties, or just acquire market share through purchases of the market leaders like Souq and possibly Flipkart?
If they are going this far to stop Walmart in India, I'm guessing acquisition is a big part of their plan.
And, in China, where Amazon.cn only has 1% of market share, Walmart has a partnership with JD who has around 32% of Marketshare.
Alibaba has roughly 51% of China's market share...so is it just a matter of time before they join forces with Amazon? Do they need Amazon? Probably not in China.
But if they want to deliver on Jack Ma's goal to deliver Web Orders anywhere in the world, in 3 days, logistically Amazon may be their best bet.
Maybe this should post should have been called:
Walmart and Amazon sitting in a tree, b-a-t-t-l-i-n-g!