Amazon acquires leading Middle East e-commerce player
Amazon has reached an agreement to acquire Souq.com, the largest online retail and marketplace platform in the Arab world.
As late as yesterday, Bloomberg.com reported that Emaar Malls, the shopping centre arm of Dubai’s largest publicly-traded property developer, had challenged Amazon’s reported US$650 million offer with a bid of US$800 million.
Amazon did not disclose the sum of its winning bid in a statement released yesterday.
“Amazon and Souq.com share the same DNA – we’re both driven by customers, invention, and long-term thinking,” said Russ Grandinetti, Amazon’s senior vice president of international consumer.
“Souq.com pioneered e-commerce in the Middle East, creating a great shopping experience for their customers.
“We’re looking forward to both learning from and supporting them with Amazon technology and global resources.
“And together, we’ll work hard to provide the best possible service for millions of customers in the Middle East.”
Souq.com features more than 8.4 million products across 31 categories such as consumer electronics, fashion, health and beauty, household goods, and baby.
Today, Souq.com attracts over 45 million visits per month, with localised operations in the KSA, UAE and Egypt. It offers secure online payments, option to pay cash on delivery and free returns.
Souq.com’s CEO and co-founder Ronaldo Mouchawar said the acquisition will help it grow its presence across the region.
“By becoming part of the Amazon family, we’ll be able to vastly expand our delivery capabilities and customer selection much faster, as well as continue Amazon’s great track record of empowering sellers,” he said.
Subject to closing conditions, the acquisition is expected to close in 2017.
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