Amazon vs Alibaba?

al vs amaz

 

Amazon ready to buy alibaba for $17 Billion

This is a confirmed fact that Alibaba is in talks with Flipkart to buy a stake and infuse $1 billion into India’s largest e-commerce portal. And this development ain’t good for Amazon, which is desperately trying to become the market leader of digital business inside India.

Alibaba, which already has Snapdeal & Paytm with them, is trying for a coup by getting a stake in Flipkart, and Amazon can do anything to stop it. If Alibaba is able to buy a stake in Flipkart by reportedly paying $1 billion, then they can easily combine the forces of Paytm, Snapdeal and Flipkart to create a massive front which can defeat Amazon (atleast in India).

In fact, if Flipkart is India’s most valued startup, then Snapdeal is India’s 2nd most valued startup and Paytm is the only Indian company with 10 crore customers. If these three players play with the same team, then it would be a complete market domination.

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As per available reports, Alibaba is baiting time, and creating a scenario wherein Flipkart’s valuation is further reduced so that they can get more stake and more equity. Alibaba, led by SoftBank, has around $17 billion in their kitty, and the best part is that, they have enough time and patience.

As per Author Kashyap Deorah, the current eCommerce market in India is like a poker game, and three biggest players of this game are: Flipkart (Tiger Global); Alibaba (SoftBank) and Amazon. Each one of them are aware that major consolidation would eventually happen, but no one is able to make the first move.

The cards have been distributed, and the stake is clear. It’s all about who blinks first.

As a consumer, do you think that Flipkart, which is India’s most valued startup, should sell out now and hand over the power to an American or Chinese investor? Or should they keep on the fight, and defeat them by becoming the market leader? Do share your comments right here!

 

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