Flipkart Jumps Into Online Food Retail; Will Spend Rs 2500 Crore To Beat Amazon Via ‘Flipkart Farmermart’
We are all familiar with Walmart owned Flipkart’s tendencies to lock horns with Amazon at every step of the way. We also know that Amazon has already jumped into the food delivery vertical recently with a warchest of Rs 3500 crore, and they are pretty aggressive in this niche.
Now, in order to overtake Amazon, and dominate Rs 1 lakh crore online food market in India (est. 2023 market size), Flipkart has announced that they will now step into the food delivery business, and will run a ‘farm-to-fork’ operation, under the name – Flipkart Farmermart.
The e-commerce giant has already registered the new company as Flipkart Farmermart Pvt., but is quite late to begin the procedure as compared to Amazon.
What is Flipkart Farmermart Pvt? What services will it provide? Find out right here!
Flipkart Wants To Dominate Rs 1 Lakh Crore Online Food Market
Although Flipkart is definitely late to arrive as Amazon has obtained a food retail license way back in June 2017, but still, it’s a decent start for Flipkart.
In order to speed up their expansion, Flipkart has allocated a budget of Rs 2500 crore for capturing market share as fast as possible. As per insider reports, Flipkart will not only open online platform for delivering food, but also create dedicated supply chain, and even foray into offline stores.
However, in order to go live, they first need to get the approval of the Department of Department of Industrial Policy and Promotion (DIPP) to invest in the food retail vertical.
A source has revealed, “It is critical for Flipkart to get this piece right. Grocery is the stickiest business that any e-commerce company can build. There is a huge repeat factor, which is not there with electronics or fashion or furniture.”
India’s Online Grocery Market Is Expanding
As per Research & Markets report, just 0.15% of Indians are right now ordering their groceries online, but still, it’s a huge market to capture.
From a humble Rs 6000 crore online sale of groceries and food items in 2018, India is poised to cross Rs 1 lakh crore market size by 2023.
And it is this pie which both Amazon and Flipkart cannot afford to lose.
We will keep you updated, as more details come in.