&gt; I am not sure what will be their (Flipkart’s) value proposition.<p>You are missing out on the whole forest. If you think Amazon was an innovation, solving for ‘hate to go out for shopping’ scenario, then ecommerce in India is 100X of that innovation.<p>It for simple reason that for vast majority of Indians (non-urban, big and small towns, villages etc.) there is simply no alternative if they want to buy a mobile or a SD card for mobile, or a particular book, or that latest Levis, sneakers, and so on… Heck even in big cities it is a struggle to find things.<p>The local business that you are mentioning who do home delivery is for day to day things, doesn’t extend beyond ordinary grocery items.<p>Now why Flipkart still has an advantage? It is simply because it had first mover&#x27;s advantage. Its brand is well settled in the mind of people, particularly if you consider non urban towns and villages. Those people have simple mind, once a brand settles in their life it is very difficult for another one to replace it. Amazon et al will need to  work 10X hard to replace Flipkart from their habits.<p>Another angle is - mobile.<p>At the afore mentioned places, the primary device for online shopping is mobile. Now if an app has entered into their device and they have gotten used to it (mind you these folks are not as tech savvy, smart yes but not tech savvy as they never owned a PC before), it becomes very difficult for another online retailer’s app to replace the app that they are used to.<p>Flipkart still has lot of advantage over Amazon, Snapdeal due to its brand recall (still today if you walk out of city area, online shopping means Flipkart to majority of Indians - almost same as what Xerox is to Photocopy).<p>That is their value proposition (to investors).