Business

Amazon signs exclusive pact with BookMyShow

Amazon signs exclusive pact with BookMyShow
BENGALURU: Amazon has entered into an exclusive arrangement with BookMyShow where the latter will power movie ticketing on the e-tailer's platform, the companies said. This is part of Amazon’s strategy to build a super-app like proposition on Amazon Pay—the payments unit of the firm which has an e-wallet and is available on Unified Payments Interface (UPI), with digital payments being at the core of it.

Amazon has already started flight bookings on its platform with Cleartrip and there will be additional categories on Amazon Pay following the BookMyShow deal.

The idea essentially is Amazon’s consumers can avail of the services within the company’s app or website without going to other platforms by tying up with third party players. Companies like PhonePe have also built in a similar bouquet of apps across sectors like travel, food, and others. The companies did not disclose the terms of the deal for this arrangement.

For BookMyShow, this would mean the company would get access to a new set of users owing to the wide reach of Amazon. BookMyShow said, at present, it is at an annual run rate of 200 million tickets being sold through its platform, which has 6,000 screens across the country.

“Movie ticketing is a high-consumption and high-frequency use-case. With this partnership, we are looking to accelerate the trajectory for both businesses. For Amazon, there will be higher adoption of Amazon Pay while BookMyShow will get access to creditworthy customers like Prime users,” said Mahendra Nerurkar, director, Amazon Pay India.

In line with Amazon’s approach so far with payments, it will be incentivising consumers to grow this business hoping they will eventually spend more to shop on Amazon’s platform. To put a perspective, Amazon Pay India saw losses of Rs 1,161 crore at the end of March 2019 compared to Rs 334 crore a year ago. This was largely due to the cashback it has been offering to consumers here, competing against PhonePe, Paytm and Google Pay.