Ecommerce major Flipkart is giving hyperlocal delivery another shot with its latest offering as the Covid-19 pandemic triggers a faster convergence between online and offline commerce
Meanwhile, chief executives of big technology firms gear up to testify before US Congress on antitrust issues amid rising concerns of their dominance.
Flipkart’s hyperlocal service
Flipkart has launched a 90-minute hyperlocal delivery service called Flipkart Quick to ship products across various categories including grocery, mobiles, electronics, and home accessories. The company has also tied up with its investee firm Ninjacart to foray into fresh fruits and vegetables.
For deliveries, the e-tailer is currently using another investee firm Shadowfax but over time, it plans to move to a hybrid model by leveraging kirana stores as well as its own logistics arm Ekart to fulfil orders.
Second attempt
This is Flipkart’s second attempt at hyperlocal delivery after piloting Flipkart Nearby for four months in 2015-2016 and eventually shutting it down. The hyperlocal delivery model had gained widespread investor interest a few years ago, with several startups raising venture capital, although those models failed due to poor unit economics
In the current scenario, however, the Covid-19 pandemic and the resultant lockdowns have forced a faster convergence between online and offline commerce, with traditional businesses now increasingly collaborating with ecommerce platforms as a long-term strategy to generate demand. Read more.
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Big Tech CEO test
Chief executives of four large tech firms including Amazon, Facebook, Alphabet, and Apple are set to testify in a US congressional hearing on Wednesday, marking a rare showdown between tech executives and lawmakers.
This hearing comes amid concerns of Big Tech’s dominance and the government’s “ongoing investigation of competition in the digital marketplace”. These companies have combined annual revenue of $773 billion and a market cap of $5 trillion, as reported by Axios.
Bezos’s big day
What’s particularly noteworthy will be the hearing of Amazon founder Jeff Bezos, who has never testified before US Congress, unlike his peers. The world’s richest man has often found himself in the crosshairs of the US President Donald Trump over allegations of low tax payments and his ownership of The Washington Post.
Facebook CEO Mark Zuckerberg, who is already facing a range of allegations including political bias, failure to tackle misinformation and hate speech, is also likely to face questions on the social networking giant’s previous acquisitions like Instagram and WhatsApp.
However, a Bloomberg report suggests that Zuckerberg is set to focus on portraying Facebook as an American success story, and hindering the firm may only help Chinese companies in the United States and across the world. The company also rescheduled its second-quarter earnings to the following day (July 30).
Read: Big tech goes on shopping spree, brushing off antitrust scrutiny
Naspers & India Tech
India remains a top destination for Naspers in terms of investments, Bob van Dijk, group CEO of Prosus and Naspers, told ET in an exclusive interview.
Key takeaways
– On the impact of Jio Platforms’ funding blitz: “While Jio is an impressive company on its own and more so with its new investments, a lot of value creation happens through innovation and typically by startups. Very few large companies manage to truly innovate.”
– On the influence of global geopolitical issues on investing: “Foreign investors are a great source for stimulating local economies and stimulating growth. However, investing has become political, which is a shame.”
– On the impact of Covid-19 on portfolio firms: “Results are mixed in short term but an accelerated shift in people’s behaviour online is expected in long term – whether it is payments, buying products, or delivery services.”
– On potential food delivery consolidation: “Covid-19 has been painful but based on the progress that has already been made, Swiggy can deliver a very healthy business without consolidation.”
Read the full interview: India remains a top destination for us, not worried about Jio: Bob van Dijk
Reliance Brands has acquired the stake of Ronnie Screwvala-owned Unilazer Ventures in lingerie retailer Zivame and is in talks with other partners to take full control of the firm. It could pay up to $160 million to acquire Zivame.
Zodius is currently the largest shareholder in Zivame with about 60% stake while Malaysia’s sovereign wealth fund Khazanah Nasional Bhd owns about a 25% stake.
Why does it matter?
Acquiring Zivame could give a boost to Reliance’s plans to offer multiple shopping and buying options to customers. Zivame currently holds a substantial market share in the premium lingerie category. It has 30-plus retail stores and a presence in more than 800 partner stores across the country. Read more.
Google’s long WFH extension
Google employees will work from home across the world until at least July next year, marking a six-month extension of the search giant’s previous plan to keep most of its offices closed through the rest of this year. With this, Google has become the first major US firm to have such an extended timeline to bring employees back to offices amid the pandemic.
Why is this significant?
The move could pave the way for other companies to announce a similar extension of their work-from-home plans. Facebook had earlier stated that it plans to open offices from January 1, 2021, although Mark Zuckerberg had said that the company is looking to “aggressively opening up remote hiring” from this month, expecting half of its workforce to work out of its offices over the next five to 10 years. Earlier, Jack Dorsey-led Twitter and Square had allowed employees to work remotely forever. Read more.
(Illustration and graphics by Rahul Awasthi)
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