Mukesh Ambani-led Reliance Industries, known for its disruptive presence in the consumer space with cut-throat marketing strategies, is now gearing up to enter India’s quick commerce space, taking on the likes of Blinkit, BigBasket, Instamart, and Zepto.
According to sources cited by TOI, JioMart, a venture by Reliance, aims to provide grocery delivery services in a minimum of 7-8 cities initially, with plans to expand its coverage to over 1,000 cities in the future.
Previously, the company provided 90-minute delivery services through JioMart Express, but it was discontinued approximately a year ago. Initially launched in Navi Mumbai, the Mumbai-based conglomerate had ambitions to extend this service to around 200 cities.
Now, JioMart aims to cater to customers within a 30-minute timeframe. However, competitors like Blinkit, Swiggy, and Zepto excel in providing rapid deliveries of groceries and a range of non-grocery items within just 10-15 minutes.
Competition in the Quick Commerce Sector
Currently, Blinkit holds a leading position in the quick commerce sector, boasting a market share of around 40-45 percent.
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Reliance’s move aligns with Walmart’s Flipkart also gearing up to venture into the quick commerce sector, a concept increasingly favored, particularly among millennial and Gen Z households.
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In contrast to its competitors, JioMart will leverage Reliance Retail’s vast network of stores and fulfillment centers instead of adopting a dark store model for its quick commerce operations.
At present, JioMart offers customers the option to select scheduled delivery slots or opt for next-day delivery.
“Going forward, JioMart aims to extend its quick commerce offerings to encompass non-grocery items as well,” stated sources, highlighting the potential to leverage Reliance Retail’s expansive network of over 18,000 stores spanning diverse categories and formats. “JioMart remains committed to establishing a hyper-local omni-channel presence, serving customers through thousands of conveniently located stores across the country,” reported TOI, quoting a source.
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Reliance’s foray into quick commerce will intensify competition within the sector, presenting existing players with the formidable task of contending against the company’s extensive nationwide presence and considerable financial resources.
Goldman Sachs estimates the online grocery market’s gross order value to be approximately $11 billion as of FY24. Within this figure, quick commerce already accounts for approximately half, equating to $5 billion in gross order value. Analysts further speculate that the rise of immediate deliveries could be affecting the portion of purchases made from local kirana stores.
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