New Delhi: Reliance Industries Ltd has launched an online grocery service, ‘JioMart’, the head of its grocery retail business said. It is a move aimed at rivalling ‘Amazon.com’s local unit and Walmart Inc’s ‘Flipkart’. Both ‘Amazon’ ‘Flipkart’ are big players in the Indian market. ‘JioMart’ will deliver groceries in more than 200 towns across India.This was disclosed by Damodar Mall, chief executive of grocery retail over Twitter.
Project launched 1st in Mumbai
Mumbai-headquartered Reliance however, did not announce JioMart’s launch at a time it is selling $7 billion in new shares. Reliance launched a small pilot of ‘JioMart’ deliveries in select areas of Mumbai late last month. The move came days after it announced that Facebook Inc would spend $5.7 billion for 9.99 % stake in the company’s digital unit, Jio Platforms.
That partnership will help Reliance roll out service for India’s grocers and small businesses. It will ve capitalising on India’s 400 million-strong user base for WhatsApp messaging service.
Free grocery delivery
JioMart, the e-commerce venture of Reliance’s retail arm, offers free express grocery delivery from neighbourhood mom-and-pop stores. It will pose a formidable challenge to local rivals, which are also betting big on groceries for their growth.
The launch comes as India is witnessing a surge in coronavirus cases.
“Never waste a crisis, they say!” Mall said in his tweet. “A wise colleague mentioned today, ‘Alibaba also flourished starting from the SARS crisis.”
The oil-to-telecoms giant, controlled by India’s richest man, Mukesh Ambani, did not immediately comment on the launch.
Fundraising spree
Reliance is on a fundraising spree with ‘Jio Platforms’. It has recently gained a massive USD $10 billion from investors including Facebook, KKR & Co Inc and General Atlantic in a month.
Agencies