eBay India shuts down
eBay launched in India on 2004 , failed to capitalise on India’s growing e-commerce market, last year made a cash investment of $500 million and sold its India unit to the local e-commerce giant Flipkart.
On 14th August 2018, eBay India will stop taking orders and is now directing users to Flipkart to buy and sell. eBay CEO Dewin Wenig said the Indian e-commerce market had overheated and was no longer rational. eBay had notified to sell its holdings in Flipkart, which represent $1.1billion, following the close of the transaction, “we also will ne ending our current strategic relationship with Flipkart, which includes unwinding our commercial agreements with Flipklart and terminating Flipkart’s license to use the eBay in Brand”.
Flipkart had acquired eBay’s India unit last year as it raised $1.4 billion from Tencent and Microsoft
Flipkart is planning to launch a new platform to sell refurbished goods, a sector that has stayed untapped by the e-commerce players in India.