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Flipkart slips as Amazon gains in number of active app users

Amazon India, which has already established a lead in web traffic, is now inching close to Flipkart in the app world too

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E-commerce major Flipkart has lost eight million active users over a period of six months in the mobile app space, even as its nearest rival Amazon has gained six million users. According to App Annie data, the number of monthly active users (MAUs) on Flipkart’s app platform has declined from 91 million in January to 83 million in June this year. On the other hand, Amazon’s share has risen from 58 million users to 64 million in the same period.

In January 2016, Amazon’s MAUs stood oat almost one-third that of Flipkart, Myntra and Jabong put together. But by June, Amazon has cut that lead and totals half of the active users of the three companies put together. Since January Amazon’s active users have been on the rise every month, though Flipkart, Myntra and Jabong are all now under one umbrella.

An Amazon spokesperson said, “Today 70% of the traffic on our platform comes from mobile, so mobile is integral to our India strategy.  And it always has been. Mobile will continue to be a huge focus for us, both from a buyer & seller perspective.”

Also in terms of web traffic, according to SimilarWeb data gathered by Kotak Institutional Equities, Amazon leads the market with 180 million users as compared to 120 million for Flipkart.

Flipkart did not respond to e-mails sent by FE which sought to understand the reason for the downward trend. Flipkart along with Myntra and Jabong had 140 million users in January, but by June it had slipped to 127 million.

Harish HV, Partner, India Leadership team at Grant Thornton said,  “Clearly, it’s a sign that Amazon is making more penetration in the newer areas. If we look from the market perspective, Amazon continues to hog the front page ads in newspapers and they continue to advertise in other modes. Whereas others seem to have reduced the overall marketing spend.”

Flipkart, which launched the android App in September 2013, a month before Amazon did, leads the market in terms of overall app downloads till June 2016. Data gathered by Flipkart from Similarweb indicates that Flipkart has about 33.79% overall app downloads among the top e-commerce players, while it is 21% for Amazon and 16.5% for Snapdeal.

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Apart from Amazon, the only other player whose MAUs has increased is Paytm. The mobile wallet and e-commerce company, 80% of whose sales come through mobile apps, beat Snapdeal and Myntra and Jabong put together in terms of both app downloads and monthly active users month-on-month in 2016. Paytm monthly active users increased from 54 million users in January to 57 million users in June.

Shankar Nath, Sr. Vice President at Paytm said,  “We have seen an over 25% increase in Q2 over Q1. We have launched new services such as movie ticket bookings, flights and hotel bookings etc which have drawn new app users.”

Snapdeal, however, took a big hit in the number of active users dropping from 38 million in January to 33 million June.

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Posted by on July 28, 2016 in News and Views

 

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