How will jiomart disrupt and create a revolution in online grocery delivery

Today I am going to discuss about a start up company which is now in emerging stage but can shake the entire retailer market. I am talking about the Jiomart. In this article we will understand what is Jiomart and what is their business model.

Business Model

Jiomart was started in 2019 and it was also launched in the march of 2020. The Jiomart model works as you will place a order in your mobile which will be received by local Kirana store. Then store appointed delivery boy or delivery girl will take the order to your home. Then you can pay by cash or by card or in online whatever mode you want to choose. 

Jiomart works as O2O model. It means online to offline delivery. It means you will give order online and you will get from offline stores. Jiomart does not want to stop only by this. They generated 7 points model by which they want to capture a huge market share.

Asset Light Model

As the stores was owned by a local shop owner, jio did not have to bear rent or electricity cost. By this they will have very low capital expenditure.

Huge Capital Investment

Jio was very serious in the business. They raised money from major international and national companies like facbook to silverlake. 

Ecosystem Creation

They want to create a huge ecosystem. They already have telecommunication system and now they are integrating a huge number of shop owners to their ecosystem. They have future plans to expand their companies into electronics, clothing and various other home brands.

Planning before entering

Jio did a long and elaborative research as they did in case of Jio sim cards. They did some acquisitions like grab and ninja which will help them in logistics. They also acquired Asteria Robotics so they can use the AI technology.

Advanced Technology

Jio has some partnership with big name like facebook. They want to integrate facebook`s Whatsapp so that anyone can be in their ecosystem and give order easily. They want to make sure that customers get their delivery in quickest time possible around the country with their robust supply-chain. 

Creating ecosystem in unorganized sector

Though there are big names like amazon, flipkart, big bazaar or Dmart in retail market but they cover only 10 percent of the market. Rest of the 90 percent was covered by small shopkeepers who are very unorganised. Jio want to capture and convert this unorganized market into an organized one. 

Maximum Customer satisfaction

Although Grofers, bigbasket are there exclusively in grocery delivery business, there will be some plus point for the jiomart. In case of grofers the minimum order value is 500 rupees to get free delivery but there is no minimum order value or charge in case of Jiomart. If Grofers has 5000 products, jiomart will have 50,000 products catalogues. Jio can give more discount than other companies as they will purchase a huge amount of products directly from the manufacturer company. 

Combining everything, Jiomart can create billion dollar business capturing a huge portion of market.

Leave a Comment