Would Souq.com be the next prey like Snapchat?
Recently we have seen how Snapchat is struggling in creating a value of their product since the launch of Instagram stories. With the greater user base of Instagram, they had a better opportunity to promote their stories feature. In 2013, Facebook offered to buy Snapchat for $3 billion. In 2017, Facebook is literally killing snapchat. Now you will find all snapchat features provided in Facebook products. You can find now Instagram stories, WhatsApp status and Messenger filters and stickers. You don’t need to use Snapchat anymore. And if you were using snapchat for it’s temporary value, That is exactly what is provided at WhatsApp status.
Why is Snapchat struggling?!
Because they didn’t put a plan for a counter attack from Facebook when they didn’t accept the acquiring offer in 2013. No one know what is the current plan of snapchat for the coming years, but I can predict a great failure if they used the same plan of the past years.
Here comes a new case much much similar to Snapchat and Facebook. It’s the deal of acquiring the Dubai-based online retailer souq.com by the U.S. giant e-commerce Amazon.com Inq. In January, The negotiation between Amazon Souq.com was focused on Amazon paying $1 Billion for acquiring Souq.com but they walked away after disagreeing on the price. Amazon later resumed the talk with Souq.com for an acquisition with 650$ million value.
Lately, Daily News Egypt said that Amazon has announced that they are studying establishment of logistics center in Egypt. They added that a delegation from Amazon is set to visit Cairo within 2–3 weeks to discuss the procedures and choose the most appropriate location.
This move indicates a great competition will take place in MENA region and Egypt especially. This competition can take Souq.com to a slow death or a great success eliminating Amazon. Souq.com should work on their future plan putting in consider this challenge.
Let’s see how the market will change in the coming days.