Amazon Sets Its Sights On a New $48 Billion Market in India


May. 29 2019, Published 4:09 p.m. ET

Amazon enters India’s flight-booking market

Amazon (AMZN) continues to diversify its business in India. In addition to operating an online shopping platform and providing cloud computing services, Amazon also recently entered India’s online travel-booking market.

Amazon announced earlier this month that its customers in India could now use its web and mobile platforms for domestic flight bookings. It’s a move that not only gives Amazon exposure to India’s mobile travel-booking market (projected to be worth $48 billion by 2025, according to Research and Markets) but also sees the company taking a path that could pull more traffic to its platforms, which could, in turn, improve the appeal of its digital advertising service.

Thanks to its massive consumer base and advanced product recommendation technology, Amazon is proving to be a powerful challenger to Google (GOOGL) and Facebook (FB) for digital advertising dollars.

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Amazon’s international revenue jumped 9.0%

Amazon has partnered with ClearTrip, a global online travel company based in India, for its flight-booking service in India. Amazon’s expansion into the flight-booking business sees it moving to challenge the likes of Booking Holdings (BKNG), Expedia (EXPE), and TripAdvisor (TRIP) for revenue in the online travel market. Revenue rose 4.0% YoY (year-over-year) at Expedia in the first quarter. Booking Holdings and TripAdvisor recorded revenue falls of 3.0% and 1.0% YoY, respectively, in the first quarter.

Amazon’s international retail operations, including its business in India, generated $16.2 billion in revenue in the first quarter, representing an increase of 9.0% YoY.


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