E-Commerce Laws in India Limit E-tailers Like Amazon

E-Commerce Laws in India Limit E-tailers Like Amazon

February 9, 2019

Two American companies will be affected adversely by India’s e-commerce investment rule, effective February 1st, 2019.

  • Walmart cannot sell products via Flipkart in which it has 77% equity interest.
  • Amazon cannot make deals with sellers to sell exclusively on their platform.

The rule protects India’s small retailers and traders at the expense of large online retailers’ operations in India.


Video Spotlight: Here’s why India is a huge threat for Amazon and Walmart


This post is based on the Reuters article, U.S. voices concern as India’s e-commerce restrictions hit Amazon, Walmart – sources, by Aftab Ahmed, Aditya Kalra, and Nandita Bose, January 24, 2019; and the YouTube video, Here’s why India is a huge threat for Amazon and Walmart, by CNBC Television, February 1, 2019. Image source: Shutterstock/xtock.

Discussion Questions:

1. Why did Walmart and Amazon decide to operate as online retailers in India?

Guidance: They wanted to tap into India’s booming e-commerce market and attract India’s growing population of tech-savvy shoppers with low-cost strategies.

2. What are the global operational risks for Walmart and Amazon?

Guidance: The global operational risks include tougher scrutiny of foreign business players, trade/investment policy that adversely affects foreign business Continue reading

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Toddler Gets Popsicle by Drone

Toddler Gets Popsicle by Drone

August 27, 2018

Solving the last-mile delivery problem is difficult.

One approach that is being considered is delivery by drone.  Previous OM in the News posts have looked at drone use by Zipline and Doordash.  Now, the FAA has conducted a test with a drone out of line-of-sight of the operator.

The test: delivering a Popsicle in 6 minutes from a simulated store, to a 2-year-old more than a mile away. The FAA’s drone didn’t land, but instead hovered, and lowered the Popsicle with a tether.

Current regulations limit the use of drones to line-of-sight operation.  If tests like this one are successful, the line-of-sight limitation might be lifted.


Video Spotlight: Toddler’s Popsicle-by-Air Marks Milestone in U.S. Drone Delivery


This post is based on the Bloomberg article, Toddler’s Popsicle-by-Air Marks Milestone in U.S. Drone Delivery, by Alan Levin, August 8, 2018; and the Bloomberg video, accompanying Bloomberg video. Image source: wundervisuals/Getty Images.

Discussion Questions:

1. What problems are facing the use of drones for the last-mile-delivery?

Guidance: In the US, regulations are part of the problem.  The FAA hasn’t approved drones for use beyond line-of-sight.  The Popsicle delivery was one test of concept Continue reading

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