Amazon to give the end to its app Prime Now in India
When the going gets tuff and the tuff gets going. This is well fit for Amazon in every business module starting from the Web services to Retail business globally and that is started impacting in India also. Unlike the U.S., Amazon didn't have first-mover advantage in India, with several players already present in the market by the time it debuted in the country.
The Prime Now app sends, no delivery charge and in two hours, for the goods such as groceries, electronics, home, and kitchen essentials in selected cities to the members of Amazon Prime, a paid subscription service. Reason being, The consumption pattern is different in India in compere to other countries when it comes to tech. This makes replicating the foreign strategy in the country a difficult task.
Prime membership is the most revenue-generating machine for Amazon. Amazon has over a hundred million Prime subscribers in the U.S., and with an annual membership costing $119 and the revenue from the Prime is over $10 billion annually. The strategy did not work out in India market, which they have launched in July 2016. Amazon India has around 10 million Prime members (Amazon Prime) are the paid subscribers and is now expected to get scrapped.
Delivery in India is now a battle-ground for several players, but this battle made sense for those whose sole focus was on the segment. For Amazon, an e-commerce marketplace, the application Prime Now that ran the 2-hour free delivery business seems to shut down.
Apart from this, the app is also facing problems in basic fundamental activities like procuring fresh produce, finding the appropriate list of vendors and securing reliable suppliers. The challenge is the app couldn’t perform well as demanded by the customers, whereas other delivery companies like Swiggy, Dunzo, and BigBasket have been performing well in the segment.
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