Reliance is all set to intensify India’s quick commerce sector with the upcoming launch of JioMart in June. This lightning-fast service, promising delivery within 30 minutes, will initially roll out in 7-8 cities and gradually expand to over 1,000 cities. Although JioMart’s 30-minute delivery model is currently in the testing phase, Reliance is actively seeking customer feedback to optimize its efficiency by reducing delivery time.
Launched in 2020, JioMart currently takes 1-3 days to deliver across various categories, including groceries, fashion, electronics, and other essentials. The introduction of JioMart’s 30-minute quick commerce service will pose a significant threat to the existing 10-15 minute delivery services offered by Swiggy’s Instamart, Zomato’s Blinkit, Tata’s BigBasket, Zepto, and others.
A Strategy for Success
Under Mukesh Ambani’s leadership, Reliance has a history of offering significant discounts and offers to make its services accessible to more Indian customers, as seen with Jio in the telecom sector. JioMart’s grocery delivery service is expected to follow a similar strategy, which will likely help it attract more customers across the country.
Undoubtedly, the tried and tested price war strategy that helped Reliance to establish Jio as the biggest telecom player within a short span of time provides an edge to the company. If rumours are to be believed, the company is in the process of creating a huge war chest to compete with other established players and give them a run for their money.
Setting itself apart from competitors, Reliance has no plans to open dark stores for JioMart. Instead, the platform will leverage Reliance Retail’s extensive network of approximately 19,000 stores and fulfilment centres to provide a quick delivery service.
It’s important to note that JioMart’s entry into quick commerce isn’t Reliance’s first foray into fast-delivery grocery services in India. Previously, Reliance offered 90-minute delivery services through JioMart Express, which launched in Navi Mumbai and had plans to expand to around 200 cities. However, this service was shut down about a year ago.
Walmart-owned Flipkart is also gearing up to enter the quick commerce space in July.
JioMart in India’s Quick Commerce
Talking about its performance in Q4 FY24, JioMart witnessed a whopping 94% YoY growth in seller additions. However, the company did not disclose the specific number of merchants. Additionally, the platform achieved an impressive 30% YoY surge in average order value (AOV) and a 37% YoY uptick in units per order during the quarter.
India’s quick commerce sector is heating up each quarter, with major firms like Flipkart and Reliance preparing to enter. Currently, Zomato’s Blinkit dominates the sector with around 40-45% market share. According to Goldman Sachs, the online grocery market in India is valued at approximately $11 billion in gross order value as of FY24. Interestingly, quick commerce accounted for nearly 50% of this, amounting to approximately $5 billion.
Do you think Reliance JioMart will be able to outshine all established rivals in India’s quick commerce sector? Let us know in the comment section below!
