After the success Amazon and Flipkart have seen in Indian e-commerce market, tech giant Google is planning to try its luck n competing these companies. Two different reports have hinted that Google is interested in Indian market. There were rumors about Google looking to acquire Flipkart but Walmart finalised the deal. Times reported that Flipkart denied working with Google because senior executives of Flipkart felt Google could turn out to be a potential rival in the future. Flipkart was also afraid that being an investor Google would have had access to Flipkart’s database, which could have helped the company to make its own retail venture in the country.
Another news source Mint has reported that both Flipkart and Amazon have decreased their advertising budgets with Google because they feel that Google will soon launch a rival e-commerce entity in India. Flipkart and Amazon now are seeing Google as a “serious threat” and are looking to focus on their own advertising programmes for the longer run.
There are several other hints that show that Google can enter e-commerce. Google has thousands of employees in India who review and take down content on YouTube and its other platforms. There is a big chance that Google is silently preparing to enter e-commerce with a bang.
With Tez, Google already owns a significant share of India’s UPI payments market, and controls payments app to integrate with its e-commerce platform. Google has also invested in a app called Dunzo that delivers food, groceries and other items in Bangalore. In addition to this, Google has invested in fashion e-commerce startup Fynd, which would have given Google an idea about Indian online customers.
Knowing that no big e-commerce company in India is making profits, it’s surprising to see how India has managed to attract e-commerce companies from the world. The size of Indian market and digitization has made companies to invest in India thinking about the future profits they can make.