As per reports, JioMart (1) is testing a new model based on subscription similar to its competitive players such as Super Daily, MilkBasket, and BB Daily. The platform is testing the service in a few locations, including Bengaluru and Chennai. With the new model, users will order their daily requirements such as vegetables, dairy, bakery products, and other essentials.
Notably, the subscription-based commerce space observes higher strengthening by its latest acquisition of DailyNinja and Super Daily. Swiggy and BigBasket acquired them in March 2019 and March 2020, respectively. The fresh meat and vegetable provider ecommerce platform, FreshToHome, backed by FreshToHome, also hired Doodhwala.
To date, MilkBasket is the only independent player in the market that is sustaining in the market space. The Gurugram-based firm is emphasizing on profitability and public listing after the fallout talks with Reliance.
JioMart Subscription-Based Model Depends on the Results from Two Cities
The expansion of the subscription-based service model of JioMart will depend on how it will receive a response from these two cities, Bengaluru and Chennai. As per the sources, the company is also conducting interviews with potential employees. It regards to the new service in Delhi-NCR and Bengaluru.
Above all, the micro delivery platform’s feasibility testing came into action when its parent company, Reliance, is in talks with MilkBasket fell out because of the valuation.
Reports also suggest that Reliance had offered an all-cash deal to MilkBasket. However, the terms of the agreement were not acceptable to the investors of the Gurugram-based firm. Sources empathize that the founders did not see any merit in the deal and called it off.
If the JioMart completes the pilot in the two cities with positive results and goes for the scale-up, it will directly compete with its peers; Supr Daily, MilkBasket, and BB Daily.
Notably, BB Daily and Supr Daily, backed by Swiggy, are the most significant market player with more than 2 lakh orders per day. It is followed by MilkBasket that clocks more than 80,000 to 90,000 orders every day.
Author: Rucha Joshi
Source : https://timesnext.com/jiomart-to-start-subscription-based-commerce-service/
Date : 2020-10-03T14:06:08.000Z