Amazon and Ril Competing to Dominate India’s $18 Billion Online Grocery Market
A new report said on Friday that the online grocery market is going to be the next battleground for growth, expanding to over $18 Billion by 2024. Market leaders are growingly monetizing by creating a sticky customer base through convenience-based levelers like assortment, express delivery, and subscriptions.
India’s E-grocery market has become a racetrack for two of the world’s richest and most powerful men — Jeff Bezos and Mukesh Ambani. The Reliance group is actively expanding its position in the online retail market. Reliance launched JioMart, an e-commerce venture for Reliance Retail’s grocery outlets in November 2019. JioMart has become the topmost grocery delivery app and is delivering 4 lakh orders per day across 200 Indian cities.
About the same time, Amazon has aggressively expanded its ‘Amazon Pantry’ services to 300 cities across India amid the pandemic. Amazon aims to provide grocery within 2 hours of the order through ‘Amazon Fresh’. Amazon as well as Reliance are looking beyond a particular Gross Merchandise Value (GMV) and are rather strategizing to build loyalty to keep the customers hooked to their services.
Mukesh Ambani’s Reliance still has an upper hand due to onerous existing policies for foreign companies — Amazon and Walmart owned Flipkart . Asia’s richest man Mukesh Ambani’s influence over the policymakers as well as the Indian customer base has enabled it to take a giant leap in the retail sector.
Consumers’ growing use of online tools and convenient delivery options will continue favoring verticals such as the online Grocery market. Reliance as well as Amazon will persist to hustle towards establishing themselves as clear leaders in the segment.