Image Source: Inc42
Reliance Retail is taking a decisive plunge into India's rapidly expanding quick commerce market, seeking to use its extensive store network and operational heft to take on entrenched players such as Blinkit, Zepto, and Swiggy Instamart. Following a prior attempt's failure, JioMart's new strategy marks a high-stakes gamble to own the ultra-fast delivery space, delivering groceries and beyond to customers' doorsteps within less than 30 minutes.
Background: Reliance's Second Act in Quick Commerce
Reliance Retail's initial quick commerce venture, JioMart Express, failed in 2023 because of poor economics and operational challenges.
The company is rebooting now, relying on its 20,000+ store network and robust logistics setup, instead of the previous dark store-only model.
Major Strategy Shifts
Building on Physical Stores and Dark Stores
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Reliance is leveraging its vast network of over 2,000 stores to deliver quick commerce orders across over 4,000 pin codes-wider than any other competitor in India.
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Where ultra-fast delivery is not possible from current stores, Reliance is positioning itself to establish dedicated dark stores to bridge service gaps and penetrate untapped zones.
Aggressive Expansion and Service Offerings
The firm plans to take quick commerce to 1,150 cities and 5,000 pin codes with a specific emphasis on small towns and cities where the competition is weak.
JioMart has three delivery models now:
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Under-30-minute quick delivery of essentials
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Scheduled delivery with a broader assortment
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Subscription service for daily essentials
No Hidden Charges, Waived Delivery Fees
Reliance is offering waived delivery charges-even on small orders-to lure shoppers and undercut the competition, a strategy that resembles its disruption-led moves in telephony and broadband.
Operational Performance and Expansion
Order Upsurge and Topline Growth
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Quick commerce and hyperlocal deliveries increased 2.4 times in the quarter ended March, with daily order volume up by 62% year-on-year.
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Reliance Retail posted a gross revenue of ₹3.30 lakh crore for FY 2024-25, with profit after tax increasing by 11.33% to ₹12,388 crore.
Delivery Speed and Reach
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Deliveries are now guaranteed within 10–30 minutes, with one store catering to a 3-kilometre radius through bikes or cycles.
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The company is also strengthening its fashion e-commerce platform, Ajio, with same-day and next-day delivery in 26 cities.
Challenges and Competitive Landscape
Legacy vs. Agile Rivals
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Reliance's own stores are not natively architected for filling and rapid shipment, unlike Zepto or Blinkit's dark stores, presenting logistics challenges.
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Real-time inventory sync, order fulfillment precision, and app experience continue to be key impediments for Reliance to be on par with customer experience for tech-first competitors.
Market Dynamics and Profitability
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The rapid commerce market is growing very fast (75–100% YoY) but profitability eludes all players, with competitors like Blinkit continuing to incur heavy losses despite aggressive expansion.
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Reliance's size and control over inventory do bestow an initial advantage, but competitors are shifting to build up their own supply chains and inventory management.
What's Next?
Reliance is watching closely customer migration from walk-in to digital orders, leveraging its physical stores as both fulfillment centers and customer acquisition points.
The aggressive marketing and operational transformation of the company indicate that it is ready for a long fight to gain market share, with the landscape of the sector set to change by the end of the year if Reliance's strategy works.
Sources: Inc42, Business Standard, Economic Times, Finshots
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