Reliance JioMart will emerge as the biggest threat to Blinkit’s dominance in India’s fast trading sector

Reliance is set to intensify India’s fast trading sector with the upcoming launch of JioMart in June. This lightning-fast service, which delivers within 30 minutes, will initially be rolled out in 7-8 cities and will gradually expand to over 1,000 cities. While JioMart’s 30-minute delivery model is currently in a testing phase, Reliance is actively seeking customer feedback to optimize its efficiency by reducing delivery times.

Currently, JioMart takes 1-3 days for delivery across categories including grocery, fashion, electronics and other essentials. The launch of JioMart’s 30-minute fast trading service will pose a major threat to the existing 10-15 minute delivery services offered by Swiggy’s Instamart, Zomato’s Blinkit, Tata’s BigBasket, Zepto and others.

Success strategy

Under Mukesh Ambani’s leadership, Reliance has a history of offering deep discounts and offers to make its services more accessible to more Indian customers, as seen with Jio in the telecom sector. Grocery delivery company JioMart is expected to adopt a similar strategy, which is likely to help it attract more customers from across the country.

Undoubtedly, the tried and tested price war strategy that has helped Reliance establish Jio as the largest telecom player in a short span of time gives the company an edge. if rumors are to be believed, the company is in the process of creating a massive war chest to compete with other established players and give them a run for their money.

Differentiating itself from the competition, Reliance has no plans to open dark stores for JioMart. Instead, the platform will leverage Reliance Retail’s extensive network of around 19,000 stores and fulfillment centers to ensure fast delivery.

It is important to note that JioMart’s entry into the fast commerce market is not Reliance’s first foray into fast grocery delivery services in India. Earlier, Reliance offered 90-minute delivery services through JioMart Express, which was launched in Navi Mumbai and planned to expand to around 200 cities. However, this service was disabled about a year ago.

Walmart-owned Flipkart is also gearing up to enter the fast commerce space in July.

JioMart in fast trading in India

Coming to its Q4FY24 performance, JioMart saw a massive 94% year-on-year growth in new sellers. However, the company did not disclose the specific number of sellers. Additionally, the platform achieved impressive 30% YoY growth in average order value (AOV) and 37% YoY growth in units per order during the quarter.

India’s high-speed trading sector is gaining momentum with each quarter, with major names such as Flipkart and Reliance preparing to enter the market. Currently, Zomato’s Blinkit dominates the industry with around 40-45% market share. According to Goldman Sachs, India’s online grocery market gross order value for FY24 is around $11 billion. Interestingly, almost 50% of this amount was accounted for by high-speed trading, which was worth approximately $5 billion.

Do you think Reliance JioMart will be able to outshine all established rivals in the Indian fast commerce sector? Let us know in the comments section below!