In recent years, Reliance has been trying to move away from its backbone oil and energy business. To this end, it has raised about $26 billion from investors like Google and Facebook for its digital and retail arms. This comes amid its move to compete with Amazon.com Inc and Walmart-backed Flipkart in India. As per a latest report on Monday, Reliance is aiming to ramp up its retail and grocery business in the country. Within six months, the conglomerate plans to embed its ecommerce app JioMart into WhatsApp. As per the report, the decision to amalgamate JioMart with WhatsApp will let hundreds of millions of users to order products from Reliance without having to leave the app.
In India, WhatsApp had about 400 million users at last count. Last year, Facebook invested $5.7 billion for a 9.99% stake in Jio Platforms. Last year, JioMart was launched in May with aims to be operational across 200 cities in India. The e-commerce arm of Reliance’s retail arm provides free express grocery delivery from neighbourhood mom-and-pop stores. In recent times, Reliance has been aggressively working on its e-commerce platform. It is likely to benefit from the ecosystem that it has created by means of Jio users. It has got readily available customer base of hundreds of million.
It is to be seen how the global e-commerce giants such as Amazon and Walmart-backed Flipkart will take on Reliance JioMart. Both the firms have had their loyal customer bases over the years. In such circumstances, JioMart might be a tough competitor for them.