Amazon vs Reliance: Two richest men in court?

0
164
Mukesh Ambani has a home advantage against Amazon. Photo: Getty Images

A fight over an Indian grocery company has pitted the world’s largest e-commerce business Amazon against India’s largest company Reliance.

The company are at odds because they both made separate deals with same Indian retailer- Future Group.

Analysts say the legal battle, in which an American multinational technology firm is facing off against a local hero with a home-field advantage, could shape the growth of e-commerce in India for years to come.

Satish Meena, a senior forecast analyst said, “I think this is massive. Amazon has never seen this kind of rival in any of their markets.”

Reliance Cheif Executive Mukesh Ambani – who is India’s richest man – also has a history as a disrupter.

Analysts say Amazon has never seen the kind of competition it faces from Reliance. Photo: Getty Images

Amazon has been aggressively expanding its presence in India, where it hopes to cash in on a growing e-commerce market.

Since 2019, Amazon has owned a 49% stake in Future Coupons, which gives it an indirect ownership stake in Future Retail.

If Reliance’s purchase is allowed to proceed, it would give its retail arm access to over 1,800 stores in more than 420 cities in India, as well as Future Group’s wholesale business and logistics arm.

If Amazon succeeds, it may gain the upper hand, slowing a key competitor’s plans to push into e-commerce.

Source: BBC

 

comments