Update: Amazon’s launch is official. Amazon has made its way into Singapore.
Amazon Prime Now app is now available for download on the app stores.
From The Straits Times news, Amazon is using Singapore as a gateway to enter the Southeast Asian market.
The launch, according to the portal, will see services such as Amazon Prime, Amazon Prime Now fast delivery and Amazon’s e-commerce services made available to Singapore’s population, which numbers over five million people.
Amazon is known to be extremely fast and efficient in its deliveries. It’s e-Commerce business spans from food delivery, gadgets, media streaming to web services which are catered to help small & medium businesses grow. That’s also one of the reasons why Amazon is the biggest player in the e-Commerce in US, with the NASDAQ-listed stock rallying over 30% YTD.
A common thing on every Singaporean investor’s mind is how Amazon’s entrance into SG will possibly affect SGX-listed stocks.
The dominating force in the e-Commerce space is currently Alibaba, which is funding Lazada and Redmart. Lazada is focused on non-food, electronic products such as cameras, drones and tablets while Redmart is focused solely on food products.
Alibaba also has a stake in SingPost, our national logistics provider. QSI is a joint venture by Alibaba and Singpost, focused on growing and enhancing eCommerce logistics capabilities in Southeast Asia and Oceania, to target region’s rapidly growing online retail markets.
In a SingPost press release dated 27 October 2016,
SingPost today completed the joint venture with Alibaba in which Alibaba has invested S$86.2 million for new QSI shares making up 34 per cent of QSI, with SingPost owning the remaining 66 per cent.
There was also a second shares placement made by Alibaba in 2016, Alibaba, China’s largest e-commerce company and the second-biggest investor in SingPost, which raised its stake to 14.4% with a further investment of S$187.1 million.
While Amazon has not officially made entrance into SG, investors are already contemplating how it would affect listed stocks like SingPost. For now, with Alibaba being a key competitor to the e-Commerce and logistics scene, SingPost seems to be within the radar.
For one, Amazon had already taken up 100,000 sq feet of warehouse at Toh Guan since last year, at Mapletree Logistics Hub (under Mapletree Logistics Trust) in the Jurong East area, as a Business Times Article stated.
However, with an entrance of a big player like Amazon, the impact might not be limited to only businesses in the logistics or e-Commerce industry. That’s because new innovation and players are able to bring disruption. Regardless of whether if it’s good or bad disruption, it will make a big impact.
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