Published 15:03 IST, May 24th 2020
Reliance launches JioMart online grocery service, to deliver in over 200 towns
In a significant development, Reliance Industries Ltd (RIL) launched an online grocery service called the ‘JioMart’ which will be delivering to over 200 towns.
- India News
- 2 min read
In a significant development, Reliance Industries Ltd (RIL) launched an online grocery service called the ‘JioMart’. The chief executive of grocery retail at the Indian conglomerate, Damodar Mall informed that the grocery services will be delivering in more than 200 towns across the country. Although Mumbai-headquartered Reliance has not yet announced JioMart’s launch, however, at the time it is reportedly selling $7 billion in new shares.
Last month, days after announcing that Facebook Inc would spend $5.7 billion for 9.99 per cent stake in the company’s Jio Platform, Reliance had launched a small pilot of JoiMart deliveries in select areas of Mumbai. The newly launched e-commerce venture of Reliance’s retail arm now offers free express grocery delivery from neighbourhood mom-and-pop stores. However, it is expected that JioMart will post a formidable challenge to local rivals, which are also battling big on groceries for their growth.
The launch of JioMart comes as India is witnessing a surge in coronavirus cases. According to a media outlet, it is also expected that the product catalogue on JioMart’s website will be expanded after lockdown restrictions aimed to curb the spread of COVID-19 are eased. Mall even took to Twitter and said, “Never waste a crisis they say!”. He even mentioned that ‘Alibaba’ also flourished starting from the SARS crisis.
Reliance-Facebook partnership
Meanwhile, the US tech giant Facebook had invested Rs 43,574 crore to pick up a 9.99% stake in its subsidiary Jio Platforms. The deal - equivalent to $5.7 Billion - values Jio Platforms at Rs 46.24 lakh crore or $65.95 Billion (at Rs 70 per Dollar), making the firm "amongst the top-5 listed companies in India by market capitalization" as per Reliance's statement.
The partnership between the two firms will also help Reliance roll out service for India’s grocers and small businesses by capitalising on India’s 40 crore-strong user base for Facebook’s WhatsApp messaging service.
Updated 15:03 IST, May 24th 2020