As the speculations of Google’s foray into e-commerce surfaced last month, the company’s investments plan in Flipkart now seems to be fading fast.
At the time of the rumours of Google’s solo entry into e-commerce, it was expected that the Indian e-commerce marketplace would oppose any investment from the search giant on the pretext of competition.
According to an ET report, senior executives at Flipkart have opposed Google’s interest in the company as they see it as a potential rival in future and Google would gain access to the company’s database to help its own venture.
Over the years, Google and Walmart have been operating together in the US via Google Express (shopping service of Google) platform. Both companies reportedly said to be eying to replicate US model in India to counter other e-commerce players especially Amazon.
Additionally, Google’s investments in Flipkart would have helped Walmart to strengthen anti-Amazon alliance in India and cement pole position in e-commerce segment.
Google spokesperson, however, denied the report saying that “This is all speculative and we currently have no plans to bring Google Express to India. Flipkart did not respond either.
Now it will be an interesting case to see how Walmart carries its relationship with both firms (Google and Flipkart) if Google’s floats its own e-commerce venture.
Google’s interest in Indian online commerce forecasted as a result of its $550 million investment in China’s second-largest Internet retailer JD.com.
Caser Sengupta who is leading Google’s Next Billion Users program in India is likely to head the e-commerce unit for the company in the country.
Right from the beginning of Walmart-Flipkart deal, Google was seen as a potential investor in Flipkart, however, the deal seems far from being materialised. Currently, the $16 billion acquisition deal is under consideration for regulatory clearance at Competition Commission of India.