According to the newly formed partnership, Flipkart will offer all of MakeMyTrip’s brands like MakeMyTrip, Goibibo and redBus to its users.
With reports of Indian e-commerce giant Flipkart looking to enter the online travel aggregation market, the unicorn has now officially announced partnership with MakeMyTrip. According to the newly formed partnership, Flipkart will offer all of MakeMyTrip’s brands like MakeMyTrip, Goibibo and redBus to its users. With this alliance MakeMyTrip will be able to leverage Flipkart’s customer base which currently lies as 100 million registered users.
Commenting on the alliance with MakeMyTrip, Kalyan Krishnamurthy CEO of Flipkart quoted, “Flipkart and MakeMyTrip have played a defining role in shaping the consumer internet ecosystem in India and bringing millions of people online. This strategic partnership helps us make travel booking a seamless experience for customers, even those in the farthest regions, while also furthering our goal of being a one-stop destination for all digital transactions online.”
While Deep Kalra, Founder and Group CEO of MakeMyTrip said, “Flipkart is one of the most exciting companies of our times and we are delighted to partner with them to catalyse the massive online travel opportunity in India. This partnership will help us reach out to an even wider consumer base and further open up the online travel market in a significant way.”
Further Flipkart is planning to introduce flight booking on its platform, according to media reports. The rumours started falling in from March, when MakeMyTrip co-founder Rajesh Magow joined Flipkart’s board after 2 years. Also, both companies have Naspers as their common investor.
Flipkart is also looking to hire people to head the new team. With the new integration of online travel services, Softbank-backed Paytm has also been active. Paytm has also been trying to integrate travel services, events into its app trying to increase the number of transactions by users. On the other hand, Amazon has been pretty aggressive with the grocery section trying to do the same.
According to a report by Boston Consulting Group and Google India, India’s travel market is predicted to grow at 11 percent and is expected to hit the mark of $48 billion by 2020. The biggest contributor to this growth will be air travel – which is further expected to grow by 15 percent to reach $30 billion in the next 2 years. Hotels are expected to grow at a rate of 13 percent, hitting the $13 billion mark by 2020. The report citied developing internet infrastructure in India and use of digital payments as the reasons for the growth.