Amazon.com to storm into the Middle East through Souq.com
One of the most amazing thing is, despite the fact that Amazon.com is one of the world’s biggest retailer, it doesn’t have much traction in the Middle East. So as to remedy this situation, Amazon is reportedly looking to buy Souq.com, its equivalent in the Middle East.
Rumours of Amazon’s eyeballing Souq.com has also been reported by Bloomberg.
As per its report, Jeff Bezos and crew are likely to spend up to $1 billion on this acquisition in order to gain a foothold in the region which spans countries such as Saudi Arabia, UAE and Egypt.
While both, Amazon and souq, are keeping mum on the deal, the fact that it has been reported in an august publication such as Bloomberg, indicates that the rumour could be serious.
For Amazon, this acquisition could be sweet, since Souq has already solved some of the local logistical challenges, which aren’t so prominent in the countries where Amazon is a dominant player.
As per Inc., who profiled the company a few months back, souq has developed a payment platform since credit cards aren’t ubiquitous.
Souq’s system consists of top-ups in the form of prepaid card, which are available at various brick-and-mortar stores.
Amazon’s sophisticated delivery system could be handy, since many areas in this region could be hard to traverse.