Amazon sees ‘huge potential’ with new $3 billion investment in India

Amazon

Amazon is spending $3 billion on top of the $2 billion it started spending in India just two years prior. The company says it sees “huge potential” for the world’s fast-growing economy.

Founder and CEO, Jeff Bezos, announced the new funding, which will help the company expand its operations in India.

“We have already created some 45,000 jobs in India and continue to see huge potential in the Indian economy,” he said at an India-U.S. business event in Washington on Tuesday attended by Indian Prime Minister Narendra Modi.

The US-based e-commerce giant is already facing huge competition in the region from Flipkart and Snapdeal.

Indian regulations prevent foreign retailers like Amazon from selling directly to customers in India, so the company instead operates as a pure marketplace for third-party vendors.

Bezos said at a conference last week that Amazon is opening lots of small distribution centers around the country because it handles most “last-mile” delivery logistics itself.

In comparison, most “last mile” deliveries in the United States are handled by the US Postal Service and UPS.

“We’re kind of adapting to the local model,” he said.

The e-commerce giant is trying some unique approaches to attracting vendors. Last year the company sent mobile carts serving drinks like tea and lemon juice around to business districts in more than 30 cities.

Amazon has also developed a service that helps small businesses get online in less than an hour.

Last month, Apple CEO Tim Cook also visited the country and announced that Apple would open an app design and development accelerator in the country.