The traders' body has strongly objected to the business model of both the companies and said that it is a well accepted fundamental principle of trade that loss acquiring business entities can not sustain long in the market unless backed by financial institutions or investors to sustain losses.
Expressing surprise, they said that both Amazon and Flipkart are suffering with huge losses of thousands of crores of since last many years but not only continuing their business activities on full swing but also hold few "big sales" every year.
They further said that as per latest information, Amazon has registered cumulative losses of over Rs 7,000 crore across various units in year 2018-19 whereas revenue increased by 54 per cent.
On the other hand, Flipkart registered a loss of Rs 5,459 crore whereas combined revenue shot up by 44 per cent, it said adding it is a unique case where sales are amazingly growing every year but on the same side losses also increased to a huge extent in case of both Companies.
CAIT in its letter has urged the Prime Minister to intervene in this crucial issue and issue appropriate directions to the concerned authorities so that retail trade in India may conduct its business activities in a fair and ethical business atmosphere.
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