Amazon set to launch in Poland, shares in local Allegro fall


FILE PHOTO: The logo of Amazon is pictured inside the company's office in Bengaluru, India, April 20, 2018. REUTERS/Abhishek N. Chinnappa

WARSAW (Reuters) - Online shopping platform Amazon is preparing to set up a Polish based website so local shoppers will no longer have to order via its German site, it said on Wednesday, sending shares in top local rival Allegro down by over 7%.

Amazon has been present in Poland since 2014 with nine logistics centres but customers have had to order via its international websites, adding to costs. Local media have reported for months that the group was preparing to launch a local online shopping platform.

"Amazon has been supporting Polish customers for many years and helping to sell products of Polish entrepreneurs in our European stores. The next stage is the introduction of a full retail offer for consumers in Poland and it is now time to take this step," Alex Ootes, vice president for EU Expansion at Amazon, said in a statement.

Amazon's expansion increases competition for Polish Allegro, which is the dominant e-commerce platform in the country.

"Allegro will be forced to offer a wider range of free delivery options, which will increase logistics costs," mBank analyst Pawel Szpigiel said in a note.

Allegro made its debut on the Warsaw Stock Exchange in October with one of the biggest initial public offerings in Europe in 2020.

(Reporting by Agnieszka Barteczko, Additional reporting by Adrianna Ebert in Gdanks;Editing by Elaine Hardcastle)

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3

   

Did you find this article insightful?

Yes
No

Next In Tech News

Facebook removes Thai military-linked information influencing accounts
Explainer: How brands will target ads to you after the death of browser cookies
Parler drops case against Amazon for pushing it offline over Capitol violence
Google won't use other web tracking tools after phasing out cookies
European telcos cash in on tower assets as high-cost 5G investment looms
Emerging Europe.com bolsters defences as Amazon enters Poland
Labour rights issue at forefront of Spain’s gig economy with potential regulation
Musk floats ‘Starbase’ name change for Texas launch town
Number of Germany's electric vehicle charge points rise 10% since December
Air-taxi startup Volocopter boosts funds in race to get flying

Stories You'll Enjoy


Vouchers