Almost a year after talking about huge growth opportunity in the online-to-offline space, Mukesh Ambani-led Reliance Industries Ltd (RIL) has taken the first step in the new commerce space with the launch of online grocery platform JioMart.
The newly launched venture would act as an aggregator where it will partner with local grocers and equip them with points of sale (PoS) terminals, low-interest working capital, inventory management skills, and help with GST compliance.
On Monday, RIL’s retail arm Reliance Retail started sending JioMart invites to its telecom users. The grocery platform is offering its users options to shop from 50,000-plus grocery products, free home delivery with no minimum order value.
JioMart, which comes with the tag line “Desh Ki Nayi Dukaan”, will initially be limited to shoppers in the suburban Mumbai areas of Navi Mumbai, Thane and Kalyan.
The company plans to gradually scale up its presence after its successful initial launch, according to a Mint report. The JioMart app is yet to be launched.
The app, once launched, will connect both last-mile neighbourhood stores and consumers, leveraging data of Reliance Jio and its retail arm.
Reliance has been working with Kirana stores and consumer brands to create an operational model for new commerce for the last two years. RIL had also acquired Haptik and Fynd to strengthen its e-comm play and take on Amazon and Walmart-owned Flipkart in India.
Along with e-comm majors with grocery plans, JioMart will take on incumbents in the grocery space like Grofers and Bigbasket.
The Ambani-led firm plans to give an aggressive push to its e-commerce venture in line with its aim to generate half of the group’s revenue from the consumer businesses over the next 10 years. At present, over 70 per cent of the group’s sales come from its traditional oil and gas business.