Amazon India is slowly and steadily growing amidst all the FDI fiasco. The company is planning its every move to inches and is taking care of losses with their heads high. The American company has invested a lot of money in the Indian market and will not give up on it. The market the company currently tends to is not even 20-30% of the Indian population. Internet users in India are not aplenty compared to the 1.3 billion population.
Amazon India, however, is working towards the future. The future, as we have discussed multiple times, is all about super application. There is going to be a time when every app will offer every function. Amazon is going towards the same thing. The company is going to allow flight booking, food ordering and it already offers shopping with payments integration. The concept of the super application is based on offering everything in one app and the user would not need to leave the app.
That being said, the company is going for the kill with this one. It is trying to emulate the WeChat from China, an app that does all these things and is developed by a Chinese behemoth, Tencent. Amazon India has plans that go into the future we don’t see yet. The company understands that e-commerce is not only about selling goods but also selling services to consumers. The consumers are going to increase every moment but what matters is the retention.
The fight is also for data collection about how the consumers use the services from offline to online. Amazon is in need of knowing the same. Neil Shah, research director at Counterpoint talks about the same. He told ET that e-commerce has moved beyond selling just goods. He said, “E-commerce is no longer just about selling goods. A growing set of users are consuming services, so while Amazon knows what goods they buy, the company does not know how they consume offline-to-online services. This move will pave the way for Amazon to get access to this data.”
That being said, the Indian entity of Seattle-based Amazon is going to pave the way to the super app status via Amazon Pay. Amazon Pay is already cutting deep in the Indian market through deep discounts and amazing offers. The company is going to build the entire ecosystem of multiple apps in one app around Amazon Pay.
The company has already partnered with Box8, Faasos, Café Coffee Day, FreshMenu for food ordering and Haptik, BookMyShow, and Niki.ai for modes of payments. There are many more companies and organizations that Amazon India has partnered with and it is the way forward. Every company won’t have their own app in the future, they will offer services via different super applications and Amazon understands the trend.