Flipkart – Olx Join Hands; Common Investors Led Synergy?; Customer Acquisition Meets Monetization?

olx & flipIt is quite interesting when two ‘acclaimed’ ecommerce marketplace giants, competing for share in consumer eCommerce wallet, come together and say we shall do it together. Could it be an investor led synergy? Or an attempt to help Olx monetize its continued advertising investments by selling Flipkart products?

Olx, that says “sab kuch bikta hai (everything sells)” and Flipkart saying “yahan kharido (buy here)” well does sound like a synergy in a way.

But with these two giant competitors coming together, who shall be the blue eyed boy for investors would be relative tough to guess, unlike the earlier event of Myntra and Flipkart mutual “synergy”

Over a little one year ago, we heard Mr. Batra from OLX say  “OLX will become xerox of ecommerce for selling” clearly implying a strong eCommerce positioning with Advertising as a business model.

For those who think it is a crazy idea, well China’s taobao.com is nothing but a free marketplace for sellers to sell their product with advertising as predominant revenue stream. So this can be a great idea for India too.

However with the recent handshake between two giants, Mr. Batra, CEO, OLX.in, seemed to have taken a step back from eCommerce positioning to the same old classified story

Amarjit Batra, CEO, OLX.in, says,  “The idea for this tie-up was conceived keeping in mind the strong and independent position of OLX and Flipkart in their respective space. The rationale for the number one online classifieds platform and the leading e-commerce platform coming together for a marketing campaign is a seamless one. This tie-up will enhance consumer experience on OLX and Flipkart by giving users a more holistic online shopping experience in which they can sell their used goods on OLX before buying new products on Flipkart” reports IndiaRetailing

Similar Read:  Surviving the Digital Disruption

And for Flipkart is just like venturing into yet another line of business, c2c eCommerce and providing what they say “End to End solution to consumers”

Ravi Vora, Sr. VP – Marketing, Flipkart said, “At Flipkart, our constant endeavor has been to make online shopping convenient and attractive to the masses in the country. With this partnership with OLX, we will be able to provide an end-to-end solution to customers especially in the Electronics categories where selling old products is an integral part of the buying process” covered by IndiaRetailing

It could be a well thought move for Olx to monetize their large marketing investment on user acquisition by giving them products to buy from sellers viz Flipkart. And a strategic move by investors to save some money in Flipkart’s customer acquisition spree.

So further on in this Flipkart’s synergic drive, shall we assume properties of Nasper’s MIH in pipeline? Well they have done a great job at acquiring customers in many years with a complete 100% focus on just doing that. Now it could be a great opportunity for them to finally monetize. All they need to do is just “Flipkart It”

To contact the author, email at editor@iamwire.com.

Category