Amazon purchase of Souq.com gets warm reception from consumers in UAE

Shoppers took to social media to express their hopes on the news that Souq.com would have access to Amazon’s global platform and its faster delivery systems.

Amazon announced the deal to buy Souq.com, believed to be worth more than US$650 million, on Tuesday. Ahmed Jadallah / Reuters
Powered by automated translation

Consumers in the UAE have high expectations now that Amazon has agreed to buy the Middle East’s biggest online retailer.

Shoppers took to social ­media to express their hopes on the news that Souq.com would have access to US-based Amazon’s global platform and its faster delivery systems, which they thought could mean more goods on offer to UAE consumers at cheaper prices.

“I have used Souq.com and it has been fine. But Amazon has even more products, has faster delivery, is easier to return/exchange and is easier to pay,” said the Abu Dhabi resident Laura Buckley from the US. “Assuming I can get the same product availability across Amazon (especially my favourite home country products from Amazon) I would definitely buy online more if Amazon services were available here.” Diya Ayu, an Indian resident in Abu Dhabi, said: “I am sure Amazon will make many changes to Souq.com. I will be very happy if Amazon services are avail­able through Souq.com and definitely shop more online.”

“I use Amazon also when I am in India. I can easily get goods which are available in the US from amazon in India,” she added. Amazon announced the deal, believed to be worth more than US$650 million, on Tuesday. The move is expected to disrupt the UAE’s retail market by both encouraging more people to shop online and competing with the country’s emerging online retail market.

But customers worried that the UAE’s lack of a western style postal service could still prevent Amazon from offering the same sort of service as those available in the US or United Kingdom.

“At the moment I buy goods online in the US using Amazon and then have the items shipped to me which can be expensive so I don’t do it often,” said Gigi Henry, an American resident of the UAE. “But the new service has to be the same or better than the one I currently receive in the US for me to use it regularly.”

Some would welcome a reason to steer clear of the UAE’s busy malls now and then.

“If US products that I’m used to getting are offered here through the Amazon/Souq deal, if delivery time is within two days and it helps me avoid the mall – I will definitely use the online service,” said Yazmine Haidar Katz, an American who lives in Dubai. “I don’t want to go through four hours of shopping in Dubai Mall when I can just purchase online from the comfort of my home.”

lbarnard@thenational.ae

Follow The National's Business section on Twitter