The country’s largest grocer and retailer, Reliance Retail’s JioMart, owned by billionaire Mukesh Ambani, is turning up the heat and will now reduce delivery time to 30 minutes as fast-paced commerce gains momentum.
It will start with 30-minute delivery in the top 8 metros in the coming month and will quickly scale up to the top 20-30 cities, which is the first phase of the fast delivery. The first phase will last the first one to two months and will gradually expand to the rest of the country, according to an expert source.
Orders are processed from the network of stores, which currently numbers more than 3,500. However, the company has no plans to open dark stores nor does it plan to join the race of 10-15-20 minute delivery formats.
Last year, the company conducted a 90-minute trial delivery under the JioMart Express format in Navi Mumbai, which it tested with its employees and select customers.
The source added that the company gained insight into integrating technology to expedite deliveries.
The company is in the process of hiring more delivery personnel and will also partner with a third-party EV bike logistics player to ramp up deliveries.
Reliance Retail will also use its own logistics company Grab to ensure that deliveries reach customers within half an hour.
While it will start with 30-minute grocery deliveries, it could consider scaling up to other categories such as electronics and fashion, the source said.
Currently, Swiggy, Zepto and Blinkit are the major players in the fast trading space.
After the January-March quarter, the oil-to-telecom conglomerate said in its earnings release: “The platform has launched new features to enhance the shopping experience, including a ‘Buy Again’ widget, customer reviews for products and more.”
It also said JioMart delivered stable performance during the quarter with merchant base expansion up 94 percent year-on-year (year-on-year) and live selection up 32 percent year-on-year.
It ended FY24 with a total of 1,88,361 stores across formats and categories, and footfall stood at 1,063 million.
Gross revenues for FY24 stood at Rs 3,06,786 crore, a growth of 17.8 percent over last year, while Ebitda (earnings before interest, taxes, depreciation and amortization) for the previous fiscal stood at Rs 23,040 crore, a increase of 28.5 percent year on year.
Reliance Retail also said in its earnings release: “Investments in boosting supply chain infrastructure and omnichannel capabilities remained a priority as the company continues to deepen its presence in Tier-II cities and beyond.”
First print: May 29, 2024 | 7:50 PM IST