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JioMart expands to 200 cities in India to compete with Amazon and FlipKart

JioMart, the food platform from Mukesh Ambanis Jio Platforms, expanded the service to 200 cities over the weekend. The company previously piloted deliveries to three areas in and around Mumbai.
The move comes just a few days after Jio, part of Ambani’s sprawling conglomerate of Reliance Industries, has secured more money to fuel the billionaire’s technical ambitions. The company has raised more than $ 10 billion in the past few weeks, including an investment of $ 5.7 billion Facebook (FB) This includes a connection between JioMart and WhatsApp. This deal is still pending regulatory approval.

JioMart’s expansion is also coming as millions of Indians remain locked due to the coronavirus pandemic.

“Never waste a crisis, they say!”
; Damodar Mall, managing director of food retail at Reliance Retail, tweeted on Saturday. Mall added that the Chinese e-commerce giant Alibaba (BABA) “bloomed” during the 2003 SARS pandemic, which founder and chairman Jack Ma confirmed.
Amazon (AMZN) and Walmart possession (WMT) FlipKart are the two dominant e-commerce platforms in India. Both companies operate in hundreds of cities across the country and supply goods such as smartphones, electronics and clothing.

But the launch of JioMart is a cause for concern for Amazon and Flipkart. [because they] are not very strong in the food sector, “said Satish Meena, an analyst with the research firm Forrester. Both companies started online grocery deliveries last year.

Amazon and FlipKart also had difficulty delivering orders across India during the Covid-19 pandemic, as restrictions differed from city to city.

FlipKart had to temporarily suspend the services in March when the nationwide block began, and Amazon had to limit orders to respond to increased demand.

Amazon and FlipKart did not immediately respond to requests for comments. Both currently deliver important goods in India.

Jio's online food platform expanded the services to 200 Indian cities as large parts of the country remain closed due to Covid-19.

JioMart started late last year with the goal of putting 30 million kiranas, small corner shops in the neighborhood, online.

Groceries make up 70% of the Indian retail market, and more than 90% of the market is disorganized and run by Kirana stores, according to investment research firm Bernstein. According to Bernstein, the retail market is expected to double from $ 676 billion in 2018 to almost $ 1.3 trillion in 2025.

By comparison, the Indian online grocery market is small, according to Forrester, and is worth around $ 3 billion this year. But the company said the number is growing rapidly as the pandemic is rapidly changing people’s shopping habits.

According to analysts from Bernstein and Forrester, JioMart is well positioned to disrupt the online grocery market as it can source supplies from Reliance’s brick-and-mortar stores. Reliance is India’s largest retail operator. If JioMart succeeds in making Kiranas online and organized, it will also have a hyper-local supply and logistics chain that it can use to meet demand.

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