Flipkart Extends Competition with Amazon, to Re-Enter Grocery Business

  • When online grocery as a category has been a tough nut to crack for start-ups, India’s 2 biggest online marketplaces are set to fight out in this segment.
  • Flipkart is all set to re-enter the grocery category. Amazon already sells grocery online through Amazon Now. Amazon is seeking Indian government’s permission to start selling groceries to consumers directly instead of sourcing it from other offline grocery stores, which it currently follows.
  • Grocery category can be divided into 3 business models. First, the daily purchase where the average selling price is low, second the weekly market which is slightly better. The largest is the monthly model, which is very a sustainable business.
  • This will be the 2nd time that Flipkart would try its luck in the grocery space. In Feb’16, Flipkart had announced the closure of its hyper-local service ‘Nearby’.
Source: http://bit.ly/2o9RL62

 

 

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Parth Sarthee

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Yash Rathod

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