JioMart is testing a subscription-based model, much like existing players such as BB Daily, Supr Daily and MilkBasket, where users will be able to order daily needs such as dairy-bakery products, vegetables and other essentials.
It has been testing the service in a few locations in Bengaluru and Chennai, a TOI report said.
It’s worth noting that the subscription commerce space has seen much consolidation with the acquisition of Supr Daily and DailyNinja by Swiggy and BigBasket in March 2019 and March 2020 respectively. Doodhwala was also acqui-hired by Ascent Capital-backed fresh meat and vegetable procuring app FreshToHome.
So far, MilkBasket is the only independent player to sustain in the segment. After the fallout of talks with Reliance, the Gurugram-based firm has been stressing on profitability and is aiming for a public listing.
The expansion of JioMart’s subscription service will depend on the response from these two cities. According to two Entrackr sources, the company is also interviewing potential employees for the new service in Bengaluru and Delhi (NCR).
Importantly, the pilot of the micro delivery platform has come at a time when Reliance’s talks with MilkBasket for acquisition fizzled out over valuation. Sources emphasised that Reliance had offered an all-cash deal to Milkbasket. The terms of the deal were more or less acceptable to MilkBasket’s investors, but the founders didn’t see merit and the deal was called off.
If JioMart goes for expansion after the trial in the two cities, it will directly compete with BB Daily, Supr Daily and MilkBasket. BB Daily and Swiggy’s Supr Daily are the two largest players in the segment with over 2 lakh daily orders, followed by MilkBasket that processes over 80,000-90,000 orders a day.