Oct 30, V7N- Mukesh Ambani, Asia’s wealthiest individual, is reshaping Reliance Retail’s operations to align with the fast-paced strategies of India’s quick commerce startups. Previously reliant on longer home delivery times, Reliance now aims to deliver orders in 10 to 30 minutes, emulating firms like Zomato, Swiggy, and Zepto that have transformed grocery shopping in India by promising lightning-fast delivery from local warehouses, often in under 10 minutes. These quick commerce startups, although operating at a loss, have disrupted traditional sales by offering instant access to everyday items.
Driven by the rapid growth in quick commerce—expected to hit $6 billion this year from a mere $100 million in 2020—Reliance is strategically repurposing its 3,000 supermarkets in over 1,150 cities. In these stores, designated quick commerce kiosks are being set up, allowing dedicated teams to prepare orders within 10 minutes. According to sources, Reliance aims to expand this service nationwide, hoping to boost daily orders on its JioMart app from 200,000 to 500,000. This strategy marks a key effort to leverage changing shopping habits ahead of an IPO for Reliance Retail, last valued at $100 billion.
While challenges remain—such as managing quick packaging in crowded stores without dedicated mini-warehouses—Reliance expects to stand out through a broader product range. Additionally, Ambani is enticing consumers with competitive pricing, even offering free delivery on small orders. In Mumbai, for example, a customer can get a Coca-Cola can delivered free via JioMart, while competitors charge fees. Reliance also plans to collaborate with Dunzo, a quick delivery startup in which it holds a 26% stake, to increase delivery fleet capacity.
Ambani’s model replicates his data pricing approach to disrupt new markets and could potentially outpace competitors in quick commerce. With rapid expansion plans, a customer-centered focus, and competitive delivery incentives, Reliance aims to secure a solid foothold in India's quickly evolving quick commerce landscape.
END/BUS/RH/
Comment: