What the Flipkart Deal Means For eBay


Economic Times on the new partnership between eBay and Flipkart and the sale of eBay India:

eBay.in will continue to operate as an independent entity within Flipkart and the deal is expected to close later this year, the company said. The Bengaluru-based e-tailer has also signed an exclusive cross-border trade agreement, as a result of which Flipkart’s customers will gain access eBay’s global inventory while eBay’s customers will have access to inventory from Flipkart sellers.

eBay said in a statement that Flipkart will acquire eBay’s buyers in India and they will remove the number of active buyers in India from its reporting during the quarter in which the transaction closes. While eBay doesn’t disclose a breakdown of its active sellers in terms of geography, it had reported a total 167 million global active buyers in the fourth quarter of 2016.

From the press release:

“The combination of eBay’s position as a leading global eCommerce company and Flipkart’s market stature will allow us to accelerate and maximize the opportunity for both companies in India,” said Devin Wenig, President and CEO of eBay Inc. “eBay is committed to winning in India in partnership with Flipkart. Our exclusive global trade partnership will allow eBay and Flipkart to reach even more consumers around the world.”

eBay also gained an observer seat on the Flipkart board.

eBay may ‘win’ a second time in the very near future: eBay owns a small stake in Snapdeal, which itself is rumored to get sold off, presumably to Flipkart.

All this is just to bring an army into position against a.) Amazon, which said it will invest over $5 billion in India, and b.) Alibaba, which is entering India via Paytm.

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