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Amazon might buyout Uber Eats India business, and may include food delivery to its Prime!

Amazon India is in talks for a buyout of the local unit of food order and delivery, Uber Eats. The valuation agreed upon is around $3000 million, said by a few sources. It was also brought into notice that previously, Swiggy and Zomato, too, tried to talk Uber Eats out but failed on valuation and other concerns.

Amazon buying out Uber Eats is more of a strategic alliance. Amazon believes that the food delivery business will make its users spend more time with Amazon, apart from shopping for fashion and electronics or just binge watching on Amazon Prime.

According to the data report, more than 10 million users have opted for the prime membership. Food delivery service as an add on, will boost the number of daily user transactions.



"People order almost daily from a Zomato or a Swiggy. These apps enjoy immense client stickability. Amazon believes this could be a great add-on to its membership plan," a source stated.

Swiggy and Zomato have always been the rivals of Uber Eats India. As per the estimates of industry, Swiggy makes up to 8,00,000 deliveries per day, while Zomato came up to 6,50,000 and Uber Eats manages a smaller number roughly around 1,50,000 to 2,00,000 deliveries.

Swiggy aims at making big in the grocery delivery space, while Zomato is relying on its membership program ‘Zomato Gold’ to boost its growth.

With Amazon coming into picture, will the tables turn in the coming months for food delivery apps? Though one thing is clear, with this, Amazon is also looking to beat the growing presence of its rival Walmart, that bought Indian e-tailer Flipkart in May last year.

After Prime Day, Amazon rolls out its Back-To-School Campaign Again

After a mega hit on Prime Day, Amazon is rolling its Back-to-School campaign for the second time. This campaign includes a series of digital and TV spots created by its in-house creative department. It is seen as a big hit and is expecting a sale of $27.8 billion.




Very few retailers hold both clothing and accessories as well as school supplies like pencils and notebooks—that Amazon offers, a fact that has not escaped the digital behemoth’s notice.

“The merchandise strategy is showcasing the basics Amazon has, but also the special items for kids to achieve their [back-to-school] resolutions that Amazon can bring to a back-to-school shopping basket that not all retailers can”, says Claudine Cheever, global general manager of mass advertising at Amazon.

Amazon released a 30-second video of “Happy School Days” that showcases a diverse range of children and multiple products like backpacks, socks, stationary and other clothing. Cheever noted that both Amazon’s private label and outside brands are highlighted in it. In fact, it used its 48-hour Prime Day to tease the campaign through its live video feed.

Although, during the shopping holiday season this year, Amazon sold 175+ million products, 75 million more than last year; the Chief Financial Officer of Amazon states that they’re seeing higher marketing costs.

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On some recent earnings call, Amazon executives stated that marketing expense for the latest campaign was up by 48% as compared to the year-earlier period.

Neil Saunders, managing director of Global Data Research, in a recent research note said, “Amazon has picked up some new Prime members as a result and has captured greater share of those shoppers seeking convenience or needing a product urgently and the additional shipping expenses have taken their toll on the bottom line."


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