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Saturday, November 23, 2024

Billionaire Ambani’s Reliance plays catch-up to ride India quick commerce wave

Reliance’s late entry does come with hurdles, including a lack of small warehouses and a need to optimize for both online orders and in-store shoppers.

Mukesh Ambani, Asia’s wealthiest man, is shaking up his retail empire by adopting the fast-paced model of India’s popular grocery startups. Until now, Reliance Retail’s home deliveries typically took a day or two, but the business is pivoting toward 10-30 minute delivery times to compete in India’s booming “quick commerce” sector.

Inspired by successful companies like Zomato, Swiggy, and Zepto, Ambani’s move aims to challenge these platforms, which promise near-instantaneous delivery from neighborhood warehouses and have already disrupted traditional shopping patterns. Indians now increasingly rely on such platforms for everything from household essentials to electronics.

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Quick commerce in India has exploded, with Datum Intelligence forecasting sales of $6 billion this year, a sharp increase from $100 million in 2020. But these billion-dollar companies operate at a loss, a common trade-off for market share and consumer loyalty.

Reliance’s entry might appear late, but with its network of 3,000 supermarkets spanning 1,150 cities, the retail giant plans to close the gap quickly by embedding quick commerce teams within its stores. At select locations near Mumbai, dedicated kiosks have been set up, where small, specialized teams process orders for rapid delivery from local hubs.

Reliance’s late entry does come with hurdles, including a lack of small warehouses and a need to optimize for both online orders and in-store shoppers. Nonetheless, insiders suggest the company is betting big: setting ambitious order volume targets and integrating quick delivery into its broader retail strategy.

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This shift is also expected to drive momentum toward Reliance Retail’s IPO, long awaited in Indian markets. With Ambani’s formidable resources and retail reach, Reliance’s push into quick commerce could further intensify competition, redefining how millions of Indians shop.