Dive Brief:
- Amazon Tuesday announced that it will invest $2 billion into its operations in India, following news that e-commerce rival Flipkart raised $1 billion in new funding.
- Amazon plans to use the new investment to build more warehouses in the country.
- India's e-commerce sales are projected to grow to $22 billion by 2018, according to CLSA Asia Pacific Markets.
Dive Insight:
Amazon seems to be instigating multiple games of "anything you can do I can do better" recently. First, it was an unlimited e-book subscription targeting book publishers, then new shoppable videos, and now it's this recent investment.
If these competitive tactics pay off, they will be added to CEO Jeff Bezo's hefty book of smart successes. If not, he will soon be facing a lot more questions from investors already worried about the company's most recent earnings.
