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Amazon making moves in India, launches Prime service with more coming soon

The launch of same-day delivery option to Indian customers further captures Amazon's commitment to India.

Amazon

Like Apple and Facebook, Amazon wants a slice of India. And now, the Seattle-based company is taking action.

On Tuesday, Amazon launched its Prime subscription service in the world's second most-populated nation. Through Prime membership, the e-commerce giant offers free and faster delivery options to customers. The service is available in only a handful of regions, including the United States, UK, Japan and Germany.

As part of Prime, Amazon is currently offering Indian customers in "over 100 cities" one-day and two-day delivery options, and access to special deals. Customers in 20 cities will be able to opt for the same-day and scheduled deliveries.

India looks to be a key market for Amazon, with the country's e-commerce space estimated to be worth $119 billion by 2020. Last month, Amazon CEO Jeff Bezos, while announcing an additional $3 billion investment in the country, noted that he sees a "huge potential" in India. In the three years since its arrival in the country, Amazon India has already become one of the top e-commerce players, often trading tentpole position with local champion Flipkart.

The subscription service is currently priced at 499 rupees (roughly $8, £6 or AU$10) for a year for anyone who signs up for the 60-day free trial, slightly cheaper than the $10.99 it costs in the US.

Amazon has yet to launch the Video and Music sections of Prime in the country, but a recent report stated the company would be dropping around $300 million to create original video content specifically for India.