Last month Indian Online Seller reported how Alibaba is looking for delivery partners in India to handle end-to-end logistics. Fresh reports suggest that the Chinese ecommerce giant is looking to either buy or invest in a logistic company.
The etailer plans to invest in an ecommerce-focussed delivery firm. Sources privy to the development revealed that Alibaba has already discussed investment details with Gurgaon-based Delhivery and Pune-based Xpressbees Logistics. However, the final decision will come through in the next 4-6 months.
More funds for Paytm
As Paytm gets ready for marketplace spinoff, buzz is that Alibaba is going to add more capital in the payments firm. The aim is strengthen its digital payments arm before they officially enter the Indian ecommerce industry.
Alibaba at work
After a brief speculation about the Chinese etailer developing cold feet, it’s now clear that the company has started laying the groundwork for its India business.
Alibaba is assembling core team for India operations, looking for delivery partners and is working towards building a strong third-party online payment solution just like Alipay in China.
One of the sources shared,
“They (Alibaba) are putting their strategy in place. Fundamentally, they will buy and start with Paytm’s online retail business, because a deal with Flipkart is not happening right now as they feel it is very expensive. They will get a logistics partner to build a network like Amazon, which is very critical.”
Watch out Amazon and Flipkart
A face-off between Alibaba and Amazon is most likely to happen soon. Flipkart too should get ready for a fierce battle. On one hand, Ekart gives Flipkart an edge; on the other hand, Paytm provides a competitive advantage to Alibaba. Amazon has a $3 billion advantage, which will be utilized to improve logistics and supply chain.
Will Alibaba be less aggressive towards Snapdeal as it has minority stake in the Indian online firm? Or they won’t be spared either?