Flipkart that has been running eBay for a year now is going to shut operations of the latter on August 14. Flipkart will launch a new platform to sell refurbished, as said by Kalyan Krishnamurthy in a mail to the employees. eBay, on the other hand, is expected to launch independently of Flipkart in India.
In the e-mail to Flipkart's employees on Monday, CEO Kalyan Krishnamurthy wrote, "Based on our learnings at eBay.in, we have built a brand new value platform launching with refurbished goods - a large market which is predominantly unorganised." He also added, "With Flipkart's customer base and F1 Info Solutions & Services in our group portfolio, I believe that we can solve the key barriers to refurbished - trust & convenience - at scale."
Flipkart that will launch a new site for refurbished goods will terminate all customer transactions on August 14 this year to transition to the new site. Krishnamurthy added, "Our endeavour will be to ensure that all the eBay.in sellers and customers migrate to the new platform overtime with a remarkably enhanced experience."
The decision to part ways came in May. "Following the close of transaction, we also will be ending our current strategic relationship with Flipkart, which includes unwinding our commercial agreements with Flipkart and terminating Flipkart's licence to use the eBay.in brand," a statement by the company said.
Flipkart's new platform will have a different target audience and have a different value proposition than the parent company. Krishnamurthy also said that they are committed to investing in their independent brand.
While eBay entered the e-commerce market in India in 2004, it struggled to make an impression as the ecosystem was dominated by Flipkart and Amazon. Flipkart eventually bought eBay's India operations last year.
In May this year, US giant Walmart acquired Flipkart for $16 billion, taking its valuation to more than $20 billion. The Walmart-Flipkart deal became the world's biggest e-commerce deal.