The Booming Business of Online Grocery

11th May 2021

Growth Trends

As the pandemic confines all of us to our homes, there are only a few industries that are expected to thrive, one of which is grocery delivery, at least as far as the Indian market is concerned. 

The eGrocery market has grown 60 percent from the calendar year 2020 and is expected to grow 41-49 percent by the first half of CY21. 

The gross merchandise value (GMV) of the e-grocery market increased from $1.9 billion in 2019 to $3.3 billion in 2020.

Flipkart Supermart

Flipkart Supermart, the homegrown e-commerce firm's grocery business is currently in five cities and satellite towns and will expand to another 4-5 cities in the coming months. It will also scale up its presence to 15-16 satellite towns. 

While Flipkart Supermart offers next day delivery, its hyperlocal service Flipkart Quick has a 90-minute delivery system. The latter also delivers grocery, meat, fresh dairy/mobiles, fruits and vegetables/stationery, electronic accessories and stationery.

Amazon Fresh

The Amazon Fresh online grocery store, available to users through Amazon.in, offers four-hour delivery slots from 6 am to midnight with free delivery for orders above INR 600. Orders below INR 600 will be charged a delivery fee of INR 29.  

The company claims to have more than 5,000 products, ranging from fresh fruits and vegetables, dairy, ice-creams and dry groceries like staples, packaged food, personal care and home care on offer. Amazon’s online grocery store delivers in eight Indian cities, Mumbai, Delhi-NCR, Bengaluru, Hyderabad, Kolkata, Ahmedabad, Pune and Chennai.


JioMart has already launched in more than 200 cities, leveraging Reliance Retail’s store network, with kirana partnerships across 20 cities. 

Reliance had said that JioMart clocked big numbers during the lockdown – over 400,000 orders on a single day. In the second quarter, the company said that JioMart continues to scale-up rapidly with a consistent increase in daily customer orders.

Tata Digital Ltd.

Tata Sons Pvt. Ltd has agreed to acquire control of India’s largest online grocer BigBasket, according to a filing with the Competition Commission of India (CCI) on Friday, in a deal valued at more than $1 billion. 

This acquisition will help Tata in shaping its larger strategy to conceptualize and establish its so-called ‘Super App’ by adding a wide range of household items and grocery products from BigBasket.

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