India’s largest retailer Reliance Retail has launched a new ecommerce platform in a bid to take on Amazon in the increasingly lucrative market.
Reliance Retail, a subsidiary of Reliance Industries, today launched JioMart in the Navi Mumbai, Thane and Kalyan regions offering “free and express delivery” on over 50,000 grocery products.
Owned by India’s richest man Mukesh Ambani, Reliance’s new ecommerce platform pilot is inviting customers to sign up for home grocery delivery, with a view to rolling this out across India in the near future.
Though only 1 in 1000 Indians currently orders groceries online, the market is expected to grow an estimated worth of $870 a year to a whopping $14.5 billion by the end of 2023, while the wider Indian online retail market is set to be worth $72 billion by the end of 2022.
Reliance will be hoping to capitalise on new legislation brought in last year which restricts foreign retail giants like Amazon and Walmart-owned Flipkart from being able to sell inventory from their own subsidiaries, giving a distinct advantage to domestic companies.
Unlike Amazon and Flipkart, JioMart will connect local stores to shoppers via an app rather than selling items on its own platform, aiming to eventually connect 30 million local stores.