The March breeze was a signal to march forward in the Middle East for Amazon, as it won the close and tight war to acquire Souq.com amongst the other big contenders.
Amazon has always believed in the power of acquisition and conquering, rather than doing the field work and building relations in a new region. It is always feasible for big players like Amazon to take over the regional market favorites. Amazon’s biggest acquisition came in the year 2009, when it acquired Las Vegas-based Zappos, for a jaw-dropping $1.2 billion, and now Souq, a Dubai-based retail company founded 12 years ago by Syrian-born entrepreneur Ronaldo Mouchawar for a whopping 1 billion. The other details of the deal are a hush affair, but it is out that the deal will close in the year 2017 advised by Goldman Sachs.
“By becoming part of the Amazon family, we’ll be able to vastly expand our delivery capabilities and customer selection much faster, as well as continue Amazon’s great track record of empowering sellers,” Souq.com’s Co-Founder Ronaldo Mouchawar said in his recent interviews.
Souq has attracted the tech savvy and opulent users in the Middle East. It gets over 40 million views every month in Egypt and UAE. Since its inception in the year 2001, Souq has shown tremendous growth in its market acceptance. It has more than 8.4 million products spread across 31 categories including grocery, fashion, electronics, health and beauty, goods, and baby products. Well, it is not just about expanding markets. With this deal coming up, Amazon will access Souq.com’s Payfort. Payfort is the most trusted and popular gateway in the region which will hike up Amazon’s sales. After giving a tough competition to the Alibaba group in China, this deal has cleared Amazon’s intentions to become the undisputed Crown prince in the e-commerce world.
With Amazon dominating the Middle Eastern part of the globe, all eyes would move to Amazon and Souq’s contenders – Flipkart and Noon.com respectively. Soon, Souq.com would redirect their customers to the new Amazon site, thus handing over its entire customer base to Amazon which is worth billions!
With Amazon’s much-loved user interface, shipping and deals, the stage is all set to get new Arab eyeballs glued to their site.
Gone are the days when the people of Arab nations had to step out in scorching heat, battling the irksome rays of the sun just to find their favorite products from Souq, (which also happens to be the Arabic word for a flea market) because now Amazon happens to be their knight in shining armor!