Reliance launches JioMart across 200 cities, eyes spike in online grocery orders


Reliance launches JioMart across 200 cities, eyes spike in online grocery orders

NEW DELHI : Billionaire Mukesh Ambani’s Reliance Industries has launched an online extension of its grocery business under JioMart brand across 200 cities.

The service is being offered in all leading metros (Mumbai, Delhi, Bengaluru and Kolkata), and even in smaller towns like Mysuru, Bhatinda and Dehradun.


JioMart is now delivering in more than 200 cities, Damodar Mall, the chief executive officer of Reliance Retail’s grocery business said in a tweet.

JioMart last month started a pilot project serving users in three neighbourhoods surrounding Mumbai.

Credit Suisse said, “The national roll-out provides customers with a useful alternative to existing players (BigBasket, Grofers) as online grocery orders have spiked, given the fewer store visits”.

D-Mart, it said, mentioned that April revenues are down 45% year-on-year as nearly 50% of the stores are shut or have very restricted hours of operation. Therefore, online orders should help offset some of the lower sales in physical stores.

CLSA said as of now, the website will only use Reliance’s offline grocery supply chain as its backbone and deliver to homes.

“Success at its ongoing beta tests in Navi Mumbai, which also encompasses mom and pop stores and uses WhatsApp as a platform to order, will be later extended to pan-India,” it said.

Users can order from a full suite of grocery items by visiting the JioMart website. Products include fruits and vegetables, dairy and baked goods, staples, snacks and branded foods, beverages, and personal and home care.

Reliance’s private labels also featured prominently.

“While it does not commit on a delivery timeline when ordering (due to the lockdown), it aims to deliver orders within a two-day timeframe,” CLSA said.

Eventually, like other online retailers, it is possible that Reliance integrates its entire retail offerings, including fashion, lifestyle and consumer electronics, onto one super e-commerce platform and mobile app.

“This, along with a pan-India extension of partnerships with mom & pop stores after a successful beta test and ramp-up of this new commerce venture is crucial in Reliance’s grand plan of converting Jio’s 400 million-plus subscribers into customers for its eCommerce and other offerings,” CLSA said.

Recent partnerships with Facebook-owned WhatsApp for JioMart will only help in increasing monetisation opportunities by increasing the convenience and reach of consumers.

The grocery platform was previously piloting deliveries only in select areas of Mumbai.

“JioMart has seen a 4x rise in online orders from a low base. With its pan India presence JioMart now directly competes with Amazon and Flipkart in eCommerce,” Bernstein said in a separate report…Read more>>