Amazon has its eye on the next business it wants to disrupt in its key overseas market, India: online movie tickets. The e-commerce giant said Saturday it partnered with local online movie ticketing giant BookMyShow. to enter the reservation option on the Amazon India shopping site and app.
The move comes months after the e-commerce giant began offering the option of air ticketing in the country as it competes to turn its Amazon Pay payment service into a “super app,” a strategy increasingly used by players in emerging markets like India.
Starting today, Amazon users in India can reserve movie tickets from the “movie tickets” category under “shop by category” on the shopping site or via Amazon Pay. tab, said the e-commerce company. BookMyShow, which leads the online movie ticketing market, is the exclusive partner for this new offering, the two said.
To gain some market share, Amazon said that its credit card users in India will get a 2% cash back on every movie ticket purchase. Until November 14, it will also offer a refund of up to Rs 200 on each ticket purchase.
Neither party disclosed who will pay this refund. However, BookMyShow is probably paying Amazon a fee to tap into “millions” of customers that the e-commerce giant has amassed in the country.
For its air ticket service, Amazon India partnered with Cleartrip . Balu Ramachandran, Cleartrip’s senior vice president, told TechCrunch in an earlier interview that the company was paying a promotional fee to Amazon, but declined to provide details.
A spokesperson for Amazon India declined to comment on the financial arrangements.
BookMyShow, which employs 1,400 employees, sells about 15 million tickets each month. The service, which has a presence in more than 650 towns and cities, today has heavily supported Paytm as one of his biggest rivals. Paytm, which entered the movie ticketing business three years ago, has been able to eat up some of BookMyShow’s market share by offering refunds on every ticket purchase.
The media and entertainment business in India is worth $ 23.9 billion, said an EY-FICCI report in March this year, which noted that consumer spending on the web is growing more and more. More than 50% of all tickets sold by the four main multiplex networks in the country in recent years have been produced on the web.
Ashish Hemrajani, Founder and CEO of BookMyShow, said that through the partnership, the company will be able to access the “deep penetration of Amazon India in Tier 2 and Tier 3 cities.”
Mahendra Nerurkar, director of Amazon Pay, said today’s partnership shows Amazon’s commitment to “simplifying our customers’ lives in every way possible, while they shop, pay bills or search for other services.”
Last month, Amazon introduced a new feature that allows Amazon Pay users to pay their mobile, internet and utility bills. This is the first time Amazon has offered these functionality in any market – it plans to bring this to the US in the coming months.
Amazon has been quietly expanding its payments offering, built on top of the UPI payments infrastructure backed by local banks, in the country. Unlike its global rivals Google and Walmart Offering standalone applications for their payment services and also focusing on transactions between customers, Amazon has kept Pay integrated with its e-commerce offering and focuses on consumer-to-business transactions.
The company maintains links to several popular online services in India and frequently offers rebates to incentivize users to choose Amazon Pay over other solutions. Earlier this week, Amazon injected about $ 634 million into its business in India.