Author Topic: Google + Facebook - Jio Platforms Deal Analysis  (Read 2361 times)


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Google + Facebook - Jio Platforms Deal Analysis
« on: July 29, 2020, 12:42:52 PM »
Google’s deal with Jio Platforms JPL also envisages joint development of an entry-level affordable smartphone with optimisations to the Android operating system and the Play Store. Google had introduced a similar Android One program in 2014 in India and then redefined it a few years later, but with only limited success. We believe that slow smartphone adoption by 2G customers is less of an affordability issue and more of a battery, durability and user interface hurdle.

Recent partnerships with Facebook and Google have lent great credibility to Jio's digital offerings, particularly in minds of financial investors. The hypothesis is that considering the scale of businesses run by Facebook and Google, their cutting edge technological and strategic knowhow can help RJio scale up its platform business. In this context, what role does Jio Platforms (JPL) plays from Facebook and Google’s perspective is important.

Facebook’s deal with JPL provides an impetus for Facebook to monetise WhatsApp. Reliance Retail’s new commerce platform, JioMart, will seamlessly enable transaction using WhatsApp from millions of small merchants whom JioMart plans to partner. This transaction ability could help Facebook monetise WhatsApp in India, its largest market by subscribers.