Flipkart Applies For Food Retail License In India; Wants To Directly Buy From Farmers, Sell To Customers
Amazon’s food delivery platform will be launched in India by Diwali, and Flipkart seems to be one tiny step back – the food retail license.
But the good news is that Flipkart has finally applied for a food retail license, and are likely to get one in three months.
Find out all about Flipkart’s new venture in the food retailing industry right here!
Flipkart Seeks Regulatory Approval For Online Food Retail Business; To Be Given License In Three Months
No sooner than Amazon revealed its plans of tapping into the food delivery business, Flipkart dutifully followed. The biggest online retailer announced that they will step into the food delivery business, and will run a ‘farm-to-fork’ operation, under the name – Flipkart Farmermart.
The company has already registered the new company under the name Flipkart Farmermart Pvt., and the newest development is that it has filed for regulatory approval for its food retail business.
Flipkart has filed an application with the Department for Promotion of Industry and Internal Trade (DPIIT), and there is a possibility that the government may approve the license within two-three months.
Flipkart Farmermart To Work With Kirana Stores
Flipkart’s Farmermart will probably run its operations online, at least initially, and physical stores are not in the recent future. As per reports, it will collaborate with Kirana stores in India with the help of Shadowfax, their chosen last-mile delivery services.
Sources have revealed, “It will also focus on deep agri-supply chain investment, especially at the farm gate level and will encourage demand-driven sowing, which will help farmers produce right fruits and vegetables and get paid as per market price.”
Why Are Ecommerce Giants Going For Online Food Retail?
Reports have shown that online food and grocery retail makes up for only 0.2% of the overall retail market, but will gradually reach $10.5 billion, which is about 1.2% of the overall retail market by 2023.
Big names like Amazon, Flipkart, have started gaining a foothold in the online grocery segment probably because the market is quite untouched. Flipkart has also invested previously in fruits and vegetables supply chain agri-startup Ninjacart, whereas Amazon has partnered up with Future Group, which is an offline retail player.
Even Reliance Jio has set up a similar shop in Mumbai. This clearly shows that the business will be boosted significantly in the near future.