Amazon CEO Jeff Bezos plans to step into the Indian market with a new venture, Junglee, a comparison shopping engine, an online platform to buy or sell goods.
Amazon’s Junglee would be competing with existing giants in the domain, OLX and Quikr.
Bezos claims India is the last colossal market that is ready to be tapped. Through Junglee, Amazon would be able to bypass FDI guidelines that bar discounts.
By employing the P2P strategy, Amazon would possibly gain the upper-hand over rival Flipkart. But, with the stronghold of OLX in the Indian market, Amazon’s prospects for expansion are not too bright.
Amazon has already started on its new venture in Bengaluru and is looking forward to expanding it to other regions.
“With this service we are placing a bold bet in organising peer-to-peer selling and buying in India. Customers can now use this service to create listings for free and also enable shipping and online payments through Junglee,” said an Amazon spokesperson.
Through a market research, OLX discovered that Indian hoards used goods that amount to approximately 78,300 crore, waiting to be exploited.
Amazon has already had to face a bitter defeat in the Chinese market and now it has stepped into an unexploited Indian market, investing around $5 billion.
Amazon had initially acquired Junglee in 1998 from Indian entrepreneurs Anand Rajaraman, Venky Harinarayan, Rakesh Mathur and Ashish Gupta. Later in 2012, Junglee.com was launched as a comparison shopping engine.