Published on : Nov 13, 2017
The e-commerce retailer Flipkart has commenced pilot grocery services in Bengaluru. After a lot of contemplation, the online retailer has re-entered into the FMCG segment to serve services to an initial set of customers in Bengaluru, which will step-up competition against American online retail giant Amazon. The service is available under supermarket on Flipkart’s mobile application, however, the service requires a minimum order worth Rs 500 and free delivery is available for orders above Rs 1000.
Prior to this, Flipkart launched grocery category on its mobile application a few months ago to provide services only for its employees. The company intends to transform e-commerce in the country through technology and want to make everyday shopping convenient for customers. The plan is to scale up service to all customers in Bengaluru and to make it available in other cities in the future.
Flipkart in Plans to Offer Differentiator Services to Build Customer Base
Flipkart maiden venture into the grocery delivery service dates back to 2015. The service was offered through its app Nearby, wherein the model involved delivering from local kirana stores. The initiative was however shut down after several months.
Amazon India, Flipkart’s biggest rival in the grocery delivery service space is highly focused due to repeat purchases that has led to higher customer acquisition. Flipkart is likely to witness competition from Paytm Mall in the future. Paytm Mall is in plans to expand in this space and is in talks to acquire a significant stake in BigBasket, which is presently the leading grocery etailer in the country. Flipkart is working to offer differentiator services such as open-box delivery that will help build a customer base.