Amazon.com, Inc. (NASDAQ:AMZN) has recently announced that it is investing $2 billion for the expansion of its operations in India. The local online business giant, Flipkart is already the biggest competitor of Amazon. Both e-commerce giants have been in fierce legal battles in the past. Apparently, the tension between the two rivals is giving a huge boost to the local market. In a recent development, Flipkart and Amazon have announced that they are looking for local land spaces for building warehouses in order to meet the rising orders. The Economic Times, a business newspaper in India, reported that Flipkart has recently rented 500,000 square feet of land in India for warehouses to open them before Diwali, a festival in India, celebrated in autumn. According to the newspaper, local investors and reality business owners are happy with Amazon and Flipkart’s competition.
Amazon.com, Inc. (NASDAQ:AMZN) is already looking for a million square feet of warehousing space this year for the warehouses, The Economic Times added. The local land owners are happy with this news because it will give them a chance to enjoy the price hikes in the real estate business amid the battle between two e-commerce giants. The competition between Amazon.com, Inc. (NASDAQ:AMZN) and Flipkart will likely escalate in the coming days.
“Flipkart wants to gear up its supply chain for the Diwali rush, which is the equivalent of the Christmas sale season in the U.S., when players like Amazon.com, Inc. (NASDAQ:AMZN) do a big chunk of their business,” The Economic Times quoted a local property consultant as saying.
The Economic Times quoted another local property consultant claiming that Amazon.com, Inc. (NASDAQ:AMZN) has already taken 16,000 sq ft of warehousing space on lease in Delhi’s Mohan Cooperative area and 250,000 sq ft of space near Mumbai. Amazon.com, Inc. (NASDAQ:AMZN) is now looking for more places for the expansion of its business in India.