Mukesh Ambani’s Reliance has gone live with its most-ambitious last mile hyperlocal kirana-led retail project — Jio Mart, and this is expected to take on online grocery specialists — Bigbasket and Grofers, and large e-tailers with grocery delivery plans, such as Amazon and Walmart-backed Flipkart. This is as per a report in the Economic Times.
The initial test-market for the platform is Kalyan, Navi Mumbai and Thane, and this will be scaled up nationally soon, sources said. Reliance has digitally connected the local grocery stores and some of their products can be seen live on its platform. “Currently, kirana stores have been invited to register on the platform,” a source said.
This will enable the small businesses to compete with their larger siblings from modern retail and other e-commerce platforms, which due to their bulkbuying muscle, get better rates and offers from consumer goods companies and pass them on to the end consumer.
“What Reliance will do is to integrate the inventory and other grocery products from the neighbourhood kiranas on the platform. On its part, the company will also supply products to the kiranas at wholesale rates by aggregating purchasing requirements,” a source said.
At RIL’s 42nd Annual General Meeting in August, Ambani had said, “New Commerce is a massive new business opportunity of $700 billion. The main purpose of New Commerce is to completely transform the unorganised retail market, which accounts for 90% of India’s retail industry.”