Flipkart Launches Grocery Delivery System; Becomes Newest Player In Online Grocery Shopping
Flipkart has rolled out plans to go hyperlocal in the country. It has announced the launch of Flipkart Quick, a service that promises to deliver products from local Flipkart hubs in just 90 minutes. Flipkart Quick is being debuted in Bengaluru, where the Walmart-owned e-commerce company will deliver groceries in select destinations. The service will eventually be rolled out in six other major Indian cities. Flipkart says it aims to deliver an assortment of more than 2,000 products in categories ranging from groceries, dairy and meat products to mobiles, electronics accessories, stationery items as well as home accessories.
Customers can choose to order in the next 90 minutes or book a two-hour slot as per their convenience.
Orders can be placed anytime of the day, but will be delivered between 6:00 AM to midnight. Shoppers will also have to shell out a minimum delivery fee of INR 29.
Flipkart, in the past few months, has tied up with retail chains such as Spencers and Vishal Mega Mart to enable hyperlocal deliveries of groceries and essentials in various cities.
As per a recent report by Goldman Sachs, an American financial services company, India's e-commerce business is expected to grow at a Compound Annual Growth Rate (CAGR) of 27 percent to reach USD 99 billion by 2024, with a major boost from grocery and fashion/apparel being most likely.
A Digital Marketplace For Groceries
Flipkart isn't the first e-commerce platform going local or digitalising grocery services in India. In May this year, telecom giant Reliance Industries, together with American social media biggie Facebook started an all-new e-commerce platform called JioMart, that also aims to digitise grocery shopping in India. However, there is a slight difference in the way the two work.
JioMart uses Facebook's WhatsApp to connect local grocery stores with customers, so that the buyers can send their shopping list on a WhatsApp number and then collect their groceries from their nearest Kirana. On the other hand, Flipkart Quick is offering door step delivery — similar to Amazon's Prime service.
Flipkart Quick will follow a latitude and longitude method to narrow down a location and to be more precise and quick with delivery. This is going to be different from the traditional model of using a pin-code system to identify a delivery location, which can span across a larger area. As it progresses, Flipkart also plans to involve kirana stores as well in the delivery mechanism, converging online and offline commerce just like its rival JioMart. For now, Flipkart Quick will use its own logistics arm Ekart to fulfil orders.
Flipkart Quick is also going to be in direct competition with BigBasket and Amazon, which already have a strong footing in the Indian marketplace.