JioMart, India’s largest grocer and retailer owned by Mukesh Ambani’s Reliance group, will launch a 30-minute delivery service starting next month. Initially targeting the top eight metros, this service will expand to 20-30 cities in phase one. JioMart plans to service orders from its network of over 3,500 stores.
Technology and Logistics Integration
The company will not open dark stores or compete in the 10-15-20-minute delivery space. Instead, it will utilize its logistics company, Grab, and partner with a third-party EV bike logistics player to ensure rapid deliveries. This initiative follows last year’s successful 90-minute delivery pilot in Navi Mumbai.
Potential Expansion to Other Categories
While starting with groceries, JioMart may extend quick delivery services to electronics and fashion. The company aims to enhance the shopping experience with new features like the ‘Buy Again’ widget and customer ratings.
Market Performance and Growth
In FY24, JioMart’s seller base grew by 94% year-on-year (Y-o-Y), and its live selection increased by 32% Y-o-Y. The company reported gross revenue exceeding Rs 3 trillion, a 17.8% growth from the previous year. Earnings before interest, tax, depreciation, and amortization rose by 28.5% Y-o-Y to Rs 23,040 crore.
Focus on Supply Chain and Omni-Channel Capabilities
Reliance Retail is prioritizing investments in supply chain infrastructure and omni-channel capabilities to strengthen its presence in Tier-II towns and beyond. This expansion strategy aims to enhance JioMart’s competitiveness in the quick commerce market, where it faces rivals like Swiggy, Zepto, and Blinkit.
Summary
JioMart, part of Mukesh Ambani’s Reliance group, will start a 30-minute delivery service in major Indian cities, expanding to 20-30 cities. Orders will be serviced from 3,500 stores, using its logistics arm Grab and third-party EV bike logistics. Initially for groceries, the service may extend to electronics and fashion. JioMart reported strong growth in FY24, emphasizing supply chain and omni-channel investments.
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