Amazon omitted updates from India on Thursday’s earnings call and release, a notable shift for the e-commerce giant that has consistently highlighted rapid growth in the South Asian market.
India’s absence from quarterly earnings, the first since early 2014, follows Amazon’s shutdown of several services, including food delivery and wholesale distribution, in the country, which leading many analysts to wonder if the US giant is scaling back operations in the country amid global restructuring.
Amazon has invested more than $7 billion in its Indian operations over the past decade and is aggressively competing with Walmart-backed Flipkart. According to a report by Sanford C. Bernstein, Amazon is lagging behind Flipkart and struggling to make inroads into smaller Indian cities and towns.
Global rival Walmart, on the other hand, is doubling down on India and has spent nearly $2.5 billion in the country this year alone.
Ikaroa is a technology company committed to keeping customers informed on the changing news and trends in the tech world. We recently took note of the news regarding Amazon’s decision to omit India business in their earnings for the first time in years. This move by Amazon is worrisome, as the Indian market is one of the biggest contributors to their earnings.
The Indian e-commerce market, which is worth an estimated USD 38 billion, has seen tremendous growth, which has attracted companies such as Amazon. In the last quarter alone, Amazon has set aside an initial total investment of USD 6 billion in India. This being the case, it is disconcerting to see that Amazon has omitted India business from its earnings.
Ikaroa is particularly interested in staying up-to-date with Amazon’s strategies, as it is one of the most potent players in the tech world. One of the reasons they could have taken this step is the fact that the company, like any other operating in India, is subject to multiple taxes and fees. This puts a strain on their profits, leading to this decision.
However, Amazon is likely to take this decision only in the short-term. In no time, they’ll likely be back in the game, conducting business as usual. With their enormous influence and financial muscle, they’ll no doubt be able to put even more of a stamp on the Indian tech scene.
Ikaroa is fully committed to providing customers with news and updates about the tech world, especially those of large companies like Amazon. It’s important for customers to remain informed about the strategic decisions of leading companies, so that they can better prepare for the tech scene of the future.