Reliance Runs Solo in Quick-Commerce Sprint, Betting Big on Organic Growth

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Reliance Retail has taken a forward-thinking move in India's fast-evolving quick-commerce market by choosing to grow its network organically rather than seeking acquisitions. The company will leverage its huge infrastructure and customer base to expand profitably and economically.

Key developments:

Reliance Retail CFO Dinesh Taluja said that the company would not be acquiring existing players since there are integration issues and cost inefficiencies here.

The company is establishing speed commerce presence within its own stores and selectively utilizing dark stores where demand is high

Instant-commerce same-day orders accelerated 68 percent quarter-on-quarter and 175 percent year-on-year

Reliance's hyperlocal model is underpinned by its large retail network, allowing day one positive contribution margins in the majority of locations

Strategic focus:

Fruit and vegetables are also turning into habit-forming categories, accounting for 21 percent of recent orders versus 9 percent six months ago

Launch of JioRush, an option for four-hour delivery from six cities, is driving larger transaction sizes—average bills are 50–60 percent larger than regular orders

Reliance's strategy is the reverse of competitors like Blinkit and Zepto which are reliant on standalone dark stores and hard rollouts

Market setting:

Quick-commerce now accounts for 3 to 6 percent of every consumer goods company's e-commerce revenues, with rapid growth in metro cities

Reliance is planning to unlock profitability in the non-metro markets, a challenge for the majority of incumbents

Sources: Economic Times, Moneycontrol, MSN, ISME, Rediff, Business Standard, TopNews, StartupArticle