Amazon.com Inc. (NASDAQ:AMZN) and Walmart (NYSE:WMT) Flipkart are facing competition in the online grocery services market in India following the launch of Reliance’s JioMart.
JioMart to deliver groceries in 200 towns
The online grocery market in Indian is huge, and JioMart is expected to deliver crossers in over 200 towns nationwide. The Indian conglomerate’s grocery retail chief executive Damodar Mall confirmed the News on Saturday. The parent company of JioMart has not launched the grocery service when it is offering new shares of around $7 billion.
Last month the Mumbai-based Reliance unveiled a pilot of JioMart grocery deliveries in various select areas in Mumbai. This came days following the announcement that Facebook Inc. (NASDAQ:FB) was spending around $5.7 billion to acquire a 9.99% interest in Reliance’s digital segment, Jio Platforms. Through the partnership, Reliance will be able to launch the service for various small businesses and grocers across India.
JioMart, which is the digital venture of the retail arm of Reliance, will be offering free express delivery of groceries from nearby mom-and-pop outlets. This is a massive move that will pose serious competition to established retailers taking advantage of groceries to spur their growth.
JioMart to take advantage of Covid-19 lockdown
The launch of the delivery service comes at a time when more people are staying at home due to coronavirus restrictions. India has witnessed a surge of COVID-19 cases in recent weeks. A source familiar with the launch of the service indicated that the company will expand its product range on its website after the coronavirus restrictions are lifted.
Mall stated in a Twitter post that a crisis should never be wasted. He quoted that Chinese conglomerate Alibaba (NYSE:BABA) flourished following the SARS outbreak. So far, the Mukesh Ambani controlled conglomerate has not offered further information regarding the launch of the service. The company has been fundraising with its digital segment, Jio Platforms, that houses its telecom venture Jio Infocomm. So far, they have won around $10 billion from various investors in recent weeks.