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Amazon Prime makes first foray into South East Asia Amazon Prime makes first foray into South East Asia
(35 minutes later)
Amazon has launched its express Prime Now delivery service in Singapore - the first time it has gone head-to-head with Chinese rival Alibaba. Amazon has launched its Prime Now delivery service in Singapore - the first time it has gone head-to-head with Chinese rival Alibaba in the region.
The move is its first step into South East Asia, a region largely untapped by e-commerce, despite having a population of about 600 million people. The move is its first step into South East Asia which has a population of about 600 million people.
Lazada, currently the region's most dominant online shopping business, is controlled by Alibaba.Lazada, currently the region's most dominant online shopping business, is controlled by Alibaba.
The Prime Now service promises delivery within two hours. Amazon Prime Now promises delivery within two hours.
Amazon already delivers products to Singapore, but this is the first time they are launching the higher-end Prime services in the region including access to video streaming. As well as groceries and electronics, customers will have access to higher-end Prime services including video streaming.
Other products on offer include fresh groceries, electronics and books. Prime Now is a service available to Amazon customers who subscribe to Amazon Prime by paying an annual fee. It was first launched in New York in December 2014 and has since expanded to more than 50 major cities in nine countries.
Amazon Prime Now was first launched in the US in December 2014 and has since expanded to major European capitals.
Asian invasion?Asian invasion?
Amazon has a significant presence in India and Japan but constitutes only a fraction of the market across the rest of Asia. Amazon already has a significant presence in India and Japan but analysts say that South East Asia represents one of the biggest battlegrounds for e-commerce firms.
Analysts say that South East Asia represents one of the biggest battlegrounds for e-commerce firms. However, it is a highly fragmented market, comprising many different cultures, languages and regulations.
However it is a highly fragmented market, comprising many different cultures, languages and regulations.
Singapore is seen as a good testing ground for regional expansion because of the developed infrastructure and relatively wealthy population.Singapore is seen as a good testing ground for regional expansion because of the developed infrastructure and relatively wealthy population.
Redmart, the city state's largest existing online shopping service is owned by Alibaba-backed Lazada. Redmart, the city-state's largest existing online shopping service is owned by Alibaba-backed Lazada.