Reliance sets up online grocery store Jiomart, takes on Bigbasket, Amazon, Flipkart

The new venture will be an aggregator where it will partner with local grocers and equip them with PoS terminals, working capital, inventory management skills, among others.
Reliance sets up online grocery store Jiomart, takes on Bigbasket, Amazon, Flipkart
Reliance sets up online grocery store Jiomart, takes on Bigbasket, Amazon, Flipkart
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Reliance Retail has joined the bandwagon and has commenced, albeit in a small way, making home deliveries of groceries etc. This has been in the offing ever since the company’s Chairman Mukesh Ambani made the announcement of the plan to enter the omnichannel paly in the grocery and other household essentials.

According to an Economic Times report, the format being followed according to a report is the company is enrolling the neighbourhood kirana stores and handing them over the PoS machines for accepting payments. Reliance may offer these retailers working capital at low rates of interest to bind them into some kind of a relationship.

According to a Times of India report, Jiomart will soon be available as an app, using which customers can order from Reliance’s cash and carry stores. Small grocery stores too, can use this to restock their stores.

The company has launched a dedicated website that bears the tagline ‘India ki nayi dukaan’. A start has been made in small pockets on the outskirts of Mumbai, like Navi Mumbai, Thane and Kalyan.

Consumers can find 50,000 products online on this website and make purchases of grocery and provisions. The ordered goods will be home-delivered by the grocer and payment collected. There are discounts on offer.

Jiomart will be competing with the likes of Bigbasket, Amazon Now and Flipkart’s Supermart.

The company already has a strong presence in the brick and mortar large format stores, Reliance Fresh all over the country. The Reliance Retail arm was valued recently at Rs 2.4 lakh crore. With the digital network on the Jio platform also ready, the company wants to leverage both to make the most of the available resources.

The company has already tied up with FMCG firms and other companies with which it has long-term association through the Reliance Fresh connection to offer discounts etc. for those registering for the online to offline initiative.

The market in this segment will really get heated up as many companies vying with each other for almost the same set of end customers. These will include Amazon Pantry, Flipkart, BigBasket, Grofers and more. The customer must feel happy that a little bit of pampering will take place to capturing their hearts and souls.

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