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Everyone keeps forgetting: unlike Amazon, FK has no profit generating units within the company. EVERYTHING FlipKart does loses it money. If they don't get fund

Everyone keeps forgetting: unlike Amazon, FK has no profit generating units within the company. EVERYTHING FlipKart does loses it money. If they don't get funding, they're toast as a company. If they jack up prices, they lose customers to Amazon. In this unending war, Amazon has a secret weapon: AWS. AWS is a massive cash cow for Amazon that's also profitable. This is profit Amazon can keep pumping back into its other businesses, including the loss making Amazon India operations. FK will run out of money before Amazon does. Simple as that.

gumshuda 11y ago
And amazon took 15-18 years to make that cash cow. Flipkart will also figure out something in next few years. For all the negativity for flipkart, they have much much bigger share in apparel which is the place where margins are higher and profitability is easier. And amazon can not keep spending money on India. They have to convince their shareholders that investing in India will be profitable. So if flipkart being market leader will not be able to convince someone for more money, it will put pressure on amazon also for the same.
- exelius 11y ago
  There is no doubt that India will be profitable for Amazon. They're frozen out of China because of protectionist policies, they already own the US and Europe, so if they want to grow, India has to be part of that strategy. Given that their biggest competitor in India is on its heels, I would expect them to throw more money into the country, not less. It's not that there's absolute certainty that investing in India will be profitable -- it's just that Amazon doesn't really have any better options if they want to continue to grow.