We all are familiar with Mukesh Ambani and Jeff Bezos, both of them are billionaires.

Years ago Amazon started its e-commerce business in India and for a while, Amazon and Flipkart were the main players in the business. Many new ventures came up but never received much traction.

As we know e-commerce is not were Amazon generates the bulk of its revenues, it is not highly profitable and can sometimes be generating a loss.

A few years ago Flipkart was sold to Wall-Mart another American company making the main competition in Indian e-commerce between two American giants.

RIL was known mainly for its oil and gas business. But they revolutionized India by introducing Jio platforms, reliance jio is now the largest cellular operator in the country. Under Jio platforms, Ambani launched jio cinema and jio tv.

In 2020 Ambani started developing retail business, he invested in reliance fresh and many of his retail businesses which were not that prominent.

Ambani received huge investments in his companies and he bought FUTURE RETAIL.

This is were Ambani Vs Bezos is going to start.

Amazon's had a 7.3% stake in Future grip which operated several retail businesses along with the famous Big Bazar. According to amazon, the agreement with Future group had a clause. The clause provided amazon preference. According to the future retail can only be sold to any other entity if they are not interested in buying it.

Ambani took offer future retail including all its assets and the 1500+ stores in the country.

NOW WE SHOULD LOOK FOR THE FUTURE

India is exponentially expanding market place. When it comes to consumer good it is one of the largest consumers. No offence since it has the world's second-largest populace.

Recently rumours of a collaboration between Amazon and Reliance came out, but now we know that the possibility of that collaboration is too slim.

Mukesh Ambani over years restructured his business empire mainly into three, retail, oil and gas, Jio platforms. This is probably part of a succession plan but let's think about the Jio platforms and retail.

Recently Ambani cancelled his plans to have a merger between his Viacom 18 and sony pictures.

You need to see the Big picture here

• Ambani owns Reliance Jio, the largest cellular operator in India.
• Ambani owns Jio Fibernet, recently launched and it's gaining traction.
• Ambani owns a stake in Viacom-18, which has over 40+ channels, production house and OTT platform Voot.
• Ambani also has Jio TV and Jio Cinema, which are complementary for Jio users.
• His subsidiary Reliance retail has a chain of 10000+ stores and now acquired Future group.
• In 2020 he launched his eCommerce platform Jio Mart to compete with Flipkart and Amazon.

Ambani made jio possible by huge investments in the platform and a never before with the promotional offer of free calls and data.

Now let us see what amazon has:

Amazon now has an already established chain of sellers, exclusive deals with brands, and satisfied customers.

Why is amazon going for a retail battle?

Biyani sold future retail to the Indian business tycoon that has every capability to compete against Amazon.

After the future group retail reliance made a supply agreement with Future enterprises which will continue to supply the reliance ecosystem with goods. On announcing Jio Mart Ambani started it with grocery and it will not be so long before he expands it to all categories.

Mukesh Ambani recent collaboration with Google made big news, according to sources the partnership venture will launch cheap 4G and 5G smartphones in India. Jio is very likely to launch its 5G services by 2021.

The new Phones by Jio will be cheaper than the Chinese rivals, the Chinese companies sells the bulk of their phones via e-commerce platforms and amazon is the main beneficiary.

Usually, to set up an eCommerce platform as establish like amazon it takes years, and it did to Bezos to do so.

At the eyes of amazon reliance already has the following:

• They are an established business group and are trusted by Indians.
• It has a reputation of starting a new business and making it profitable in a short span.
• They launched an eCommerce platform and openly told they will be competing with current market leaders.
• It already has a chain of retail units and can easily deliver grocery and other products.
• Ambani announced a no questions asked return policy.
• It already has an OTT platform and told publically that they will be developing it.
• They are into building smartphones and will probably expand to building another electronic system similar to Alexa or Kindle.
• It has an entertainment branch with a large number of tv channels.
• Recent investments or collaboration with Google Facebook etc will enable them to do good with technological aspects.
• It is an Indian company and nationalism is already at its peak.

No wonder amazon send legal notice to future enterprises. But it is likely that by early 2021 amazon will be competing against a well established Jio mart.

If you are interested in updates like these, don't forget to follow me.