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