JioMart discontinues ‘Express’ quick delivery service

• ByStartupStory     |    February 15, 2023

JioMart, the grocery delivery service from Reliance Retail, has reportedly halted the operations of JioMart Express, its quick commerce offering introduced in March 2021.

JioMart Express, the 90-minute grocery delivery service launched by Reliance Retail’s JioMart, has reportedly been suspended. The JioMart Express app is no longer available on the Google Play Store, and its website is inactive. Users are now redirected to JioMart on WhatsApp, which has longer delivery times ranging from a few hours to a day. This indicates that JioMart’s fast delivery service is no longer operational.

JioMart had plans to expand JioMart Express, its 90-minute grocery delivery service launched in Navi Mumbai, to about 200 cities. However, according to insiders, JioMart has decided to discontinue the service as it is not interested in operating a high-cost business. An insider stated that the company experimented with express deliveries last year during the pandemic, but it is not a viable option for the company.

Reliance Retail’s digital commerce in grocery is diverse, including the high-reach JioMart new commerce model with kirana stores available in over 350 towns, JioMart on WhatsApp, and MilkBasket subscription services available in over 35 towns. The company plans to expand these initiatives to meet diverse consumer needs, providing an unparalleled shopping experience in the digital space.

Investors have begun to scrutinize the cash-intensive business model of quick commerce platforms, due to the ongoing funding winter for startups. Quick commerce players like Swiggy’s Instamart, Zomato’s Blinkit, upstart Zepto, and BigBasket’s BB Now are focusing on increasing average order value and encouraging longer delivery timelines to reduce costs per order. This is a common tactic used by existing players in the market to address the concerns raised by investors.

Reliance Retail is a major investor in quick commerce startup Dunzo, but may write a smaller cheque in the new funding round. JioMart had plans to use Dunzo’s delivery fleet for its JioMart Express service, but few orders were received. According to Ashutosh Sharma, VP of research at Forrester, grocery platforms have been experimenting with same-day, next-day, and two-day deliveries, but not all experiments have been successful. The quick commerce space is highly competitive, and companies must balance the need for speedy delivery with spiralling operating costs.

Profitability remains a challenge for all current players in the quick commerce industry.

According to Sharma, providing sustained fast delivery is no easy feat. While the ultra-fast service may attract new customers, it incurs significant costs to acquire and retain them. Furthermore, customers are generally unwilling to pay extra for speedy shipping.

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