04 July, 2017
Amazon.com, Inc. (NASDAQ:AMZN) has completed its acquisition of Middle Eastern e-commerce upstart Souq.com, and the final purchase price was actually much less than many were expecting.
Souq co-founder and CEO Ronaldo Mouchawar said in a statement: "It is an exhilarating time for the e-commerce industry in the region". Bloomberg previously reported that Amazon was in discussions over an investment at a valuation in excess of $1 billion but, amid rivalry from Emaar's ambitious Noon.com project and others, an acquisition agreement was reached.
As part of the deal, customers can now log on to SOUQ.com using their Amazon credentials, while the layout of Souq.com has been changed and now closely resembles that of Amazon's. Together with Amazon, our goal is to offer our customers the widest product selection, great prices, improved delivery times and first-rate customer service. In an announcement, Souq.com in particular spoke of the potential to integrate with Amazon's global seller and customer base to boost its business. The acquisition will give Amazon a firm footing in the region, where the e-commerce space is growing fast.
Mouchawar said he would continue to lead and drive Souq.com along with the senior leadership.
Established in 2005, the Dubai-based retailer was originally set up as a bidding site, but it was later expanded to become an online market, described as the Amazon of the Middle East. "We will have to ask you to stay tuned". It's also notable that thus far Amazon is expanding Souq under its own brand (rather than say Amazon UEA etc.) and allowing Amazon users to login with their Amazon credentials.
Dubai FDI succeeded in attracting Amazon.com to Dubai after high-level visits to their headquarters in the United States, and presenting the competitive advantages of Dubai as a gateway for regional expansion, Al Gergawi said in March.
