In its first-quarter earnings call on April 29, 2022, Amazon did not mention its business in India, marking the first time since 2014 that the company has not addressed its Indian operations during an earnings call. This is significant given that India has been one of the key growth markets for Amazon in recent years.
Amazon has been facing regulatory hurdles and intense competition in India, which may have contributed to its decision to not mention India during the earnings call. The company has also been focusing on other international markets such as Europe and Latin America, where it has been investing heavily to expand its presence.
However, despite the lack of mention in the earnings call, Amazon has not completely pulled out of India. The company continues to operate its e-commerce business in India and has recently launched new initiatives such as its Amazon Pharmacy and Amazon Fresh grocery delivery service in select cities.
In fact, Amazon CEO Andy Jassy had mentioned India during an interview with CNBC in February 2022, stating that the company remained committed to India and was investing in new areas such as logistics and fulfillment centers.
It remains to be seen how Amazon’s business in India will perform in the coming months and years, especially as the company faces regulatory challenges and competition from local players such as Flipkart and Reliance.
Amazon’s decision to not mention its business in India during its earnings call comes at a time when the company is facing intense regulatory scrutiny in the country. In 2020, the Indian government tightened regulations around foreign e-commerce companies operating in the country, which included restrictions on exclusive deals and discounts.
Amazon has also faced criticism from small traders and merchants in India who have accused the company of engaging in unfair business practices and driving them out of business. In January 2022, the Competition Commission of India (CCI) ordered an investigation into Amazon and Flipkart over alleged violations of competition laws.
Despite these challenges, Amazon has continued to invest in India. In 2021, the company announced a $1 billion investment in India to digitize small and medium-sized businesses and launched initiatives such as its Local Shops program to support small businesses.
Amazon also faces competition from Reliance, one of India’s largest conglomerates, which has been rapidly expanding its e-commerce and digital offerings. In August 2022, Reliance announced plans to invest $10 billion in its digital business, which includes e-commerce platform JioMart.
Overall, while Amazon may have chosen not to mention its India business during its earnings call, it remains a key market for the company and one that it will likely continue to invest in despite the challenges it faces.