The last rites of two promising startups made news a few days ago, and not just because they happened together. Flipkart shuttered Letsbuy on the same day that Snapdeal gave up on Esportsbuy, both had been acquired barely months ago, so it does seem that the acquisitions were just sugar coating on the euthanasia pills. This by itself is not particularly troubling. Natural processes of evolution dictate that many will launch and many of those will die. 2010 saw a spate of launches, one should not be surprised that many are running out of steam. Indeed, in any new business model it is quite likely that no more than a couple of firms will survive the initial spawning rush and become adults. Not all slaughter, however, presages the survival of the fittest - sometimes it is just an indicator of illness. Many people ask me why Flipkart is doing so well while others struggle. I think the trouble with e-commerce in India - and every pundit seems to know this - comes from two fundamental issues
The armchair is a wonderful place for bold opinions