e-commerce
We obsess about customer, not competition, says Jeff Bezos
MUMBAI: With the battle brewing in the e-commerce segment, the sector is making headlines every day; the latest being of Amazom chairman Jeff Bezos’s four-day visit to India.
To make his business intentions in India clear, Bezos, who is on his second visit to India, carried out a road show on a supply truck at the premises of a shopping mall in Bangalore on 28 August handing a $2 billion cheque to Amazon India VP and country manager Amit Agarwal. This is by far the biggest expansion money from overseas that has come from a multi-national.
According to the media reports, while handing the cheque, he said, “Amazon has unveiled a $2 billion investment in the country … we’ll work to better what Indians love most in shopping — vast selection, competitive pricing and fast delivery.”
Amazon had announced a $2billion investment in India barely a day after homegrown Flipkart raised $1 bn from private investors.
As per the reports, Bezos added that the cash pile will be spent on building performance centers, upgrading logistics services, developing the mobile platform and new tools and techniques to help the small and medium businesses.
Amazon’s interest in the small and medium enterprises has been echoed by several homegrown e-tailers. While Snapdeal recently announced that it was inching close to the 100,000-seller mark, Flipkart has been tying up with industry bodies like FISME and NCDPD to penetrate the SME clusters.
In an initiative called Amazon OneonOne, Bezos also had luncheon with about 100 customers on 28 September in order to find their views and opinions about the site and if there were any recommendations.
According to various media reports, Bezos also indicated that policy hurdles in India is not impacting the company’s investment plans for the country. India is yet to allow FDI in online retail. Another issue is lack of clarity in tax laws that are impacting the company’s functioning in various states.
Amazon’s main rivals in India are Bangalore-based Flipkart and Snapdeal, the Delhi-based company that counts eBay, Azim Premji and Ratan Tata as investors. Together, they have sold goods worth more than $4 billion, with Flipkart alone estimated to have crossed $2 billion. Alibaba, too, is keen on India, and the Chinese company has the money, experience and ambition to succeed here.
Talking about the competition, Bezos also reportedly said, “We have a long history of obsessing over customers rather than competition.”
With revenue of nearly $75 billion in 2013 the giant online retail site has a market value of $150 billion. It also runs a fast growing cloud computing business called Amazon Web Services and makes Kindle tablets and Fire smartphones. Bezos, in his personal capacity, bought The Washington Post newspaper last year. In India, Amazon started its technology operation first and employs a total of about 12,000 staff at offices in Bangalore, Hyderabad, Chennai and Delhi.
e-commerce
Flipkart rolls out 105 per cent bonus for 20,000 employees
Strong FY25 performance drives payouts even as layoffs and shifts unfold.
MUMBAI: In a year where belts were tightened and rewards loosened, Flipkart seems to be playing both offence and defence trimming roles on one hand while handing out a generous 105 per cent bonus on the other. The Walmart owned e commerce major has rolled out a 105 per cent bonus payout for 2025, covering nearly 20,000 employees, signalling a year of steady operational momentum even as the company navigates restructuring pressures. The payout, communicated internally by chief human resources officer Seema Nair, is tied to performance across key metrics including growth, operational efficiency, financial outcomes and people indicators, a combination that suggests the company is inching closer to its long stated goal of sustainable profitability.
Employees at SD level and below are set to receive their bonuses in March, while payouts for senior leadership, including vice presidents and senior vice presidents, will follow after the close of the performance cycle. The elevated 105 per cent multiplier stands out in a sector where cautious payouts have increasingly become the norm, pointing to what appears to be a relatively strong internal scorecard for FY25.
Yet, the announcement arrives with a noticeable contrast. Earlier this year, Flipkart reduced its workforce by around 300 roles as part of its annual performance review process. While officially framed as performance driven, the juxtaposition of layoffs alongside above target bonuses reflects a more nuanced balancing act, one that prioritises cost discipline while continuing to reward and retain high performing talent.
This dual approach is becoming increasingly common across the technology and e commerce landscape, where companies are navigating an uneven hiring environment while under pressure to deliver profitability. Rewarding top contributors, even amid selective workforce reductions, allows firms to maintain morale and retain critical talent without losing sight of financial prudence.
At the same time, Flipkart is also undergoing leadership shifts that hint at a broader strategic recalibration. Nishant Verman has been appointed senior vice president for corporate development and partnerships, while group chief financial officer Sriram Venkataraman is set to step down. Ravi Iyer will take on expanded responsibilities within the finance function, marking a reshuffle at the top as the company gears up for its next phase.
These changes come amid reports that Flipkart is planning to shift its holding structure back to India, a move widely interpreted as groundwork for a potential public listing. While timelines remain fluid, the combination of stronger financial discipline, leadership restructuring and employee incentivisation suggests a company preparing itself for greater scrutiny and scale.
For employees, the 105 per cent payout offers a welcome boost in what has otherwise been a period of adjustment. For Flipkart, it is a signal that even as it cuts where necessary, it is willing to spend where it counts. In the high stakes game of growth versus profitability, the company appears to be hedging its bets carefully, rewarding performance while reshaping itself for what could be its most defining chapter yet.
