New Delhi: Millions of Amazon users were on Friday greeted with an open letter after they logged onto the company’s website for their daily shopping needs.
The letter, which is addressed to the online retail giant’s customers, sellers and partners talks about how Amazon is deeply committed to India and that it will invest $1 billion to help digitise the country’s small businesses. Crucially, it adds how the company’s investments will help create 1 million additional jobs by 2025.
A bit odd perhaps, but it appears this letter, which almost disrupts a user’s shopping experience, is the latest salvo in the Amazon’s back-and-forth with the Narendra Modi government.
A screenshot of Amazon’s open letter.
The open letter comes just a day after commerce minister Piyush Goyal raised concerns of predatory pricing and said that Amazon was doing no big favour by investing $1 billion in India.
Amazon boss Jeff Bezos is in India this week, but has received a frosty reception so far, with the billionaire CEO not meeting any top government officials including Prime Minister Narendra Modi. The company has also had to face nation-wide protests by small retailer trade associations and will have to deal with a new regulatory probe announced by the Competition Commission of India this week.
Also read: Amazon’s Jeff Bezos Is in India, but He’s Not Exactly Getting a Welcome Wagon
Meanwhile, Goyal now appears to have walked back on some of the comments he made in public at a conference on Thursday, saying his points were misconstrued.
“We welcome all investments… Some people think I said something negative against Amazon. If you look at the context of my statement, I said that investment should come within the laws and regulations. This process is followed across the world,” the commerce minister told reporters on Friday afternoon.
On Thursday though, Goyal had aggressively questioned Amazon’s investments, asking whether they were being done to finance its losses, which would be an indicator of predatory pricing.
“They [Amazon] may have put in a billion dollars but if they make a loss of a billion dollars every year, then jolly well will have to finance that billion dollar. So, it is not as if they are doing a favour to India when they invest a billion dollars,” the minister had said in response to a question raised by The Wire’s Mitali Mukherjee.
“They are investing money over the last few years also in warehousing and certain other activities, which is welcome and good. But if they are bringing in money largely to finance losses and those losses in an e-commerce marketplace model…,” Goyal said.
These remarks drew criticism, with The Economic Times even running a story that quoted multiple unnamed Indian CEOs as saying that the commerce minister’s remarks were inappropriate.
“Until now it used to be a matter of pride to announce such big investments into India,” the chief executive of an MNC told the newspaper. “But if this is the response companies are going to get from the current dispensation, they will think twice before making or announcing investments here.”
Also read: India’s Curbs on Amazon and Flipkart Address Concerns, But Still Lack Clarity
Traders raise slogans during a protest against the India visit of Amazon Chief Jeff Bezos, at Jantar Mantar in New Delhi, Wednesday, Jan. 15, 2020. Photo: PTI
WaPo wedge?
Meanwhile, BJP leader Vijay Chauthaiwale on Friday lashed out at Amazon and the Bezos-owned Washington Post.
In remarks made to Reuters, Chauthaiwale, who heads the party’s foreign affairs department, said there was “a lot of problem” with the newspaper’s coverage of India, but did not give any specific examples.
Bezos had praised India during his ongoing visit, saying the 21st century will be the Indian century and that the dynamism and energy in the country was “something special”.
“I am not opposing Amazon as a company, in fact I am a regular customer … Jeff Bezos should go home tell Washington Post what is his impression about India,” Chauthaiwale told Reuters.
“The Washington Post editorial policy is highly biased and agenda driven.”