Reliance Retail enters quick commerce, challenges Blinkit, Swiggy Instamart

With plans to expand to 1,150 cities and deliver groceries in just 10-30 minutes, Reliance is set to shake up the market, offering customers speed, convenience, and savings

Reliance Retail, the country’s largest retailer, has officially entered the booming quick commerce space, intensifying competition for players like Zomato-owned Blinkit, Swiggy Instamart, and BigBasket. The company began offering quick commerce services through its e-commerce platform JioMart in select areas of Navi Mumbai and Bengaluru last weekend, a move that signals its intent to disrupt the segment, as reported by The Economic Times.

Initially, Reliance would start with selling grocery items from its network of 3,000 retail stores nationwide. However, the company has ambitious plans to extend its offerings to value fashion and small electronics, such as smartphones, laptops, and speakers, according to a senior executive at the company. The quick commerce services will be fulfilled through Reliance’s existing network of stores, including Reliance Digital and Trends outlets.

Aggressive pan-India expansion on the cards
 

Reliance plans to scale up its quick commerce operations across India by the end of this month. The company aims to deliver most orders within 10-15 minutes, with the remaining fulfilled in under 30 minutes. Reliance will leverage its logistics arm, Grab, which it had previously acquired, to facilitate timely deliveries.
 

Unlike other quick commerce operators that rely on dark stores or neighbourhood warehouses, Reliance will use its existing retail infrastructure for fulfilment. Analysts have pointed out that this strategy might pose challenges in delivering within the 30-minute window, especially in cities that experience traffic congestion during peak hours.

A fee-free strategy to woo customers
 

In a bid to attract customers, Reliance has chosen not to charge delivery fees, platform fees, or surge fees, regardless of order size. This contrasts sharply with competitors like Blinkit, Swiggy Instamart, and BigBasket, which levy additional charges for deliveries. A key part of Reliance's strategy is targeting smaller cities and towns, where quick commerce operators are yet to make significant inroads. By focusing on these untapped markets, Reliance aims to create a strong foothold and gain a competitive edge over its rivals.

The company is also positioning itself as a provider of a more extensive range of products, linking its entire inventory to the quick commerce platform. With 10,000-12,000 stock keeping units (SKUs), Reliance's offering will far exceed the typical range available on competing platforms.

Targeting 1,150 cities and 5,000 pin codes
 

Reliance’s goal is to expand its quick commerce service to 1,150 cities, covering 5,000 pin codes where it already operates grocery stores. This extensive reach, combined with its focus on smaller towns and cities, is expected to give Reliance a significant advantage over its competitors, many of which are still focused on metro areas.

“Reliance has overhauled the JioMart delivery model. Previously, deliveries took 1-2 days, with small trucks delivering multiple orders sequentially. Now, the focus is on quick commerce. Each order will be delivered individually by a bike or cycle, and each grocery store will cover a 3-kilometre radius,” the senior executive told The Economic Times.

Refining delivery processes
 

Earlier this year, Reliance attempted to reduce delivery times for JioMart to just a few hours, or at least the same day, as part of its hyperlocal delivery initiative. This process has now been fine-tuned further to offer deliveries within 10-30 minutes — a key market demand, according to the executive.

Although a spokesperson for Reliance Retail declined to comment on the developments, industry experts believe the company’s aggressive push into quick commerce could significantly alter the competitive landscape.

Blended delivery model could be the future
 

Devangshu Dutta, chief executive at consultancy firm Third Eyesight, told The Economic Times that Reliance might adopt a blended approach in the long run, offering quick commerce deliveries in areas close to its stores and scheduled deliveries in areas further away.
 

“Reliance is clearly in market share acquisition mode in the quick commerce space, and waiving transaction fees while offering higher discounts is part of that strategy. There is ample opportunity for deep-pocketed players like Reliance to dominate this fast-growing segment. Their track record in retail suggests that they are willing to experiment aggressively once they find a model that works,” Dutta said.
 

For fast-moving consumer goods companies, quick commerce is rapidly becoming a vital channel, accounting for 30-35 per cent of total online sales, making it a lucrative area for major players like Reliance to tap into.