Flipkart took the decision after the assessment of the current situation
Walmart-owned Flipkart plans to expand its grocery operations in 20 more cities from the existing 50 at a time when rival and the online grocery leader Big Basket is getting acquired by the Tata Group.
“Grocery continues to be one of the fastest-growing categories, with the increase in demand for quality food and household supplies from users. In line with this, we have invested in scaling up our grocery operations across the country, strengthening ecosystem partnerships, thus ensuring a seamless grocery shopping experience through an expansive product selection, robust supply chain and smooth in-app experience for consumers,” said Manish Kumar, senior vice president, grocery, general merchandise and furniture, Flipkart.
“We have witnessed increased demand for groceries from tier 2 cities in the past year, fueled by customers increasing preference for contactless shopping, from the comforts of their home. It is a trend that we think will continue and will set the course of e-grocery space in India,” he added.
,,,, through its dedicated grocery fulfillment centers. Flipkart has also expanded its services to cities beyond the metros such as Mysore, Kanpur, Warangal and Allahabad, among others through a satellite-expansion marketplace model.
Flipkart Grocery has over 7,000 products available across over 200 categories including household supplies, staples, snacks and beverages.
Grocery is the next big frontier for online shopping and is a key focus area for Flipkart to bring new customers online. The company’s grocery operations will also give a fillip to the local food processing industry, connecting farmers producers to lakhs of consumers through the tech enabled marketplace.
The company claims that its grocery business has witnessed three fold growth in the last one year. It has not only partnered with retailers but is also working with FPOs across the country to enable formal digital access to the farmers community.
According to a recent Redseer Consulting report, over 50 percent (close to $570 billion) grocery retail space in India is addressable by e-grocery platforms. Of this, value-first households account for a significant 61 percent portion, with metro and Tier 1 markets covering more than 40 percent of this opportunity.
Flipkart has also launched ‘Flipkart Quick’, its hyperlocal delivery model in Bangalore that offers a 90-min delivery promise.
Tata group is expected to buy 68 percent stake in online grocery startup BigBasket for Rs 9,100-Rs 9,200 crore.