JioMart Business Model: How it Works, Business Partner, Plan

JioMart Kirana Store Near You
JioMart Kirana Store Near You

JioMart is currently servicing online shoppers located in select suburban areas of Mumbai. These areas include Navi Mumbai, Thane, and Kalyan. The company is planning to gradually scale up its presence as it refines its operations. JioMart promises to stock over 50,000 grocery platform for the consumers to buy every necessary daily essential product. 

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As of now, JioMart is available on the web only. The app will available on Google Play Store and Apple App Store. As part of the soft launch, RIL confirmed that it is offering “preliminary discounts” to Reliance Jio subscribers. It is also currently working on the JioMart app to make things easier. The service currently allows its users to choose from more than 50,000 grocery products along with free home delivery. It is also worth noting that JioMart does not come with any minimum order value, express-delivery, and “no-questions-asked” return policy.

JioMart Business Model
Image credit: Business Today

How JioMart Works

JioMart is going to operate on the Online to Offline (O2O) model, which means it will connect with local retailers and deliver goods to the customers by procuring them from the nearest store located in the customer’s vicinity. The business model was pioneered by Chinese e-commerce giant Alibaba Group Holding Ltd. Under the O2O model, a consumer searches for the product or service online but buys it from a physical store. This model is unlike the warehouse model used by many of the online grocery players like Grofers and Amazon Now.

JioMart Business Plan

JioMart aims at creating a win-win situation by organizing the unorganized retail sector, hence benefitting local shopkeepers whose businesses were earlier being adversely affected due to competitive pricing and warehousing strategies of other online retail stores. In addition to increased sales and margins, these shopkeepers will be equipped with points of sale (PoS) terminals, integrated billing applications, GST compliance, hence ease in taxation and also providing them inventory management skills and supply chain management skills.

JioMart Planning Business with Facebook
Image Credit: Economic Times, JioMart Planning Business with Facebook

JioMart Business Partner

The business plan of JioMart is The Jio-Facebook deal, wherein Facebook will invest Rs 43,574 crore ($5.7 billion) in Jio platforms, which will make lives easier for consumers and retailers associated with JioMart. As a business partner of this deal, Whatsapp—Facebook’s popular messaging platform —will collaborate with Jio Mart. 

Customers can place an order on JioMart’s WhatsApp number which is +91 8850008000 using their phones. Owing to this collaboration, Jio Mart users will be able to place their order through Whatsapp and Facebook while payments can be made using the ‘Whatsapp Pay’ feature (currently in pilot), and will soon be available for Indian Whatsapp users. JioMart services have been made available on WhatsApp from 25th April 2020 in Navi Mumbai, Thane and Kalyan, where JioMart is currently operating. However, the only mode of payment currently available is cash.

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