Mukesh Ambani’s Reliance Industries intends to venture into India’s quick commerce domain to rival Blinkit, BigBasket, Instamart, and Zepto. Starting with 7-8 cities, Reliance’s JioMart plans expansion to 1,000 cities, utilizing Reliance Retail’s network instead of dark stores. Goldman Sachs assesses the online grocery market at $11 billion, with quick commerce contributing $5 billion, potentially impacting kirana store sales.
Renowned for its disruptive marketing tactics in the consumer sector, Reliance Industries, under Mukesh Ambani’s leadership, is poised to step into India’s quick commerce arena, challenging Blinkit, BigBasket, Instamart, and Zepto.
According to sources cited by TOI on Wednesday, JioMart, from Reliance, aims to initially serve groceries in 7-8 cities and gradually expand its reach to encompass over 1,000 cities.
Earlier, the company provided 90-minute delivery via JioMart Express, discontinued a year ago, initially in Navi Mumbai with intentions to expand to 200 cities.
Now, JioMart aims for 30-minute service, while Blinkit, Swiggy, and Zepto promise deliveries within 10-15 minutes for groceries and other items.
Currently, Blinkit leads in quick commerce, holding 40-45% market share. Reliance’s move aligns with Flipkart’s entry into the sector, popular among millennial and Gen Z households. JioMart opts for Reliance Retail’s network instead of dark stores. JioMart offers scheduled or next-day deliveries.
Sources indicate that JioMart plans to expand quick commerce to include non-grocery items, leveraging Reliance Retail’s vast network of over 18,000 stores spanning various categories and formats. TOI, citing a source, reports that JioMart emphasizes a hyper-local omni-channel approach, serving customers from numerous nearby stores nationwide.
Reliance’s entry into quick commerce intensifies sector competition, posing challenges for existing players against its nationwide reach and significant financial backing.
Goldman Sachs estimates the online grocery market’s gross order value at approximately $11 billion in FY24, with quick commerce accounting for half, or $5 billion. Analysts indicate that immediate deliveries could be affecting local kirana store sales share.
JioMart will debut its quick commerce service in seven to eight undisclosed cities initially. It aims to extend coverage to over 1,000 cities thereafter. This initiative follows the discontinuation of Reliance Industries’ JioMart Express 90-minute grocery delivery service over a year ago. Unlike its predecessor, JioMart’s new goal is to achieve deliveries within 30 minutes. Presently, JioMart provides customers with slotted and next-day delivery choices.
Unlike Blinkit, Swiggy, and Zepto, which specialize in ultra-fast delivery of groceries and other items within 10 to 15 minutes via a dark store model, JioMart intends to utilize Reliance Retail’s vast network of over 18,000 stores and fulfillment centers for order fulfillment. Eventually, JioMart aims to diversify its offerings to include non-grocery items.
Reliance’s foray into quick commerce is set to escalate sector competition, as rivals must confront its nationwide presence and significant financial backing. According to Goldman Sachs, the online grocery market’s gross order value is roughly $11 billion in FY24, with quick commerce comprising half, or $5 billion. Blinkit presently dominates the quick commerce segment with around 40 to 45 percent market share.
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