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Alibaba Group Holding Ltd.  (BABA) - Get Alibaba Group Holding Ltd. Report  vs. Inc. (AMZN) - Get, Inc. Report  . It's the fight that tech enthusiasts have been eyeing for years and, now, it's finally happening.

Earlier this week Amazon launched its Prime Now two-hour delivery service in Singapore, an area that Alibaba has been working to claim with its own Southeast Asia e-commerce player Lazada. Last month, Alibaba spent $1 billion to raise its stake in Singapore-based Lazada to 83% as it ups its game to overtake the region's e-commerce business.  

With Prime Now, which officially launched on Wednesday, July 26,  Singapore users whose order totals below $29.48 will pay a $5.99 delivery fee. But for orders above $29.48, users can get free delivery within two hours for items including electronics, beer, fresh produce and baby products. Launched at the end of 2014, Prime Now is currently available in over 50 cities and nine countries. 

Singapore is a key location for Amazon and Alibaba as it is one of the most affluent and more westernized countries in Southeast Asia, according to CNBC.

"Many of [Singapore's consumers] are already shopping overseas," Forrester senior analyst Xiaofeng Wang explained in a statement to CNBC. 

Once one of the players can claim majority market share in Singapore, they could have better access to all of Southeast Asia, a country whose internet economy is estimated to hit $200 billion by 2025, according to a study from Singapore investment firm Temasek and Alphabet Inc.'s (GOOGL) - Get Alphabet Inc. Class A Report Google unit.

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Amazon is keen to get a foothold in Southeast Asia because it has already lost out on the most populous country in the world, China, to Alibaba, according to Tigress Financial CIO Ivan Feinseth. That's the same reason why Amazon is trying to break into India, the second most populous country in the world before Alibaba can claim it, he said.

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Alibaba can sit back and let Lazada continue to reach out to the customers it knows best, while Amazon has to start from the bottom with researching the region to figure out what works and doesn't work. 

However, Lazada Group co-founder Aimone Ripa di Meana said on CNBC earlier this month that he isn't worried about competition, particularly since he doesn't believe figuring out how to do business in Singapore automatically means you know how to do business in the Philippines or other parts of Southeast Asia. Unlike Amazon, Lazada is already operating in other areas of Southeast Asia, including Indonesia, Malaysia, Thailand, the Philippines, and Vietnam. 

"We feel very confident about what we've built so far - we have a unique approach to business," Meana said on CNBC. "Having built teams that have been with us for a long time that function in a very organic way that knows the markets, know the complexities that are in each market, which can't easily be replicated.

On Amazon's earnings call on Thursday, Amazon said that India was still its prime international focus. "We continue to invest in India," CFO Brian Olsavsky said when asked about where countries rank in its international focus.  "We're very hopeful with the progress we've made with sellers and customers alike in India and we see great momentum and success there, so we continue to invest and we have some of our best people in that business."

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For the first half of 2017, Amazon's losses from its international business totaled $1.206 billion, an enormous leap from the $255 million loss in the year ago period. Last year, Amazon said it would spend an additional $3 billion in India, a nice top off to its previous $2 billion spent in the country. 

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