E-commerce giant Amazon has delayed its much anticipated launch in Singapore, as the groundwork required to set up its business here has taken longer than anticipated, according to a media report.
Citing two sources with knowledge of the plans, TechCrunch reported on Thursday (23 March) that Amazon has pushed back its entry into Southeast Asia, with Singapore as the launch market, from the first quarter of 2017 to “later this year”.
Last November, it was reported that that the company would initially offer its Prime delivery service alongside its AmazonFresh grocery services in the Republic. Amazon views the Singapore market favourably due to factors favouring e-commerce such as higher ownership of credit cards, wider internet penetration and more established logistics and delivery networks.
When it eventually enters Southeast Asia, Amazon will take on perennial rival Alibaba, which purchased a major stake in regional commerce firm Lazada in 2016. Lazada itself purchased Singapore-based service Redmart in the same year.
Last year, Google and Singapore investment company Temasek Holdings co-authored a report that estimates e-commerce spending across the region to reach US$88 billion by 2025.