Amazon has finally opened the curtains on Prime Now, its same-day delivery service, in Singapore. It has taken years of preparation to launch this new service capable of providing one to two-hour deliveries for a variety of and countless household products, from cold beer to detergent. The Singapore site has been expected to be the largest Prime Now warehouse built by Amazon till date. The 100,000 sq. ft. Amazon warehouse stationed close to the Jurong district has been anticipated to achieve rapid delivery times.
Currently, Prime Now has been relying on third party delivery services such as Ninja Van. However, it could build out its own system if the business really takes off. Contrasting to its U.S. warehouses, Amazon has deployed humans instead of robots at the Singapore office to perform all kinds of tasks, from shelf management to picking out goods and sending parcels.
Amazon and Alibaba in Direct Face-off in Southeast Asia
After years of false starts and delays, Amazon could be prepared to cash in on an estimated 5.5 mn mobile-savvy Singaporean population, or a 600.0 mn in neighboring countries. While Amazon was encountering several delays in the launch of Prime Now, Alibaba was setting its foot in the lucrative market by means of a US$1.0 bn investment in Rocket Internet’s Lazada in 2016. Lazada has been expected to currently rule Southeast Asia. Rocket Internet has put another US$1.0 bn in June to hike up its stake in Lazada to an 83.0% approximately.
Considering the potency of Amazon that had captured the India e-commerce market in only three days, seasoned research analysts have the viewpoint that the company could give a neck-to-neck competition to Alibaba. Amazon Prime Now has been prophesied to take advantage of Singapore’s affluent and westernized customer base.