Reliance Retail’s quick commerce service JioMart is unlikely to emerge as one of the top two players in the segment due to its current 30-minute delivery model, according to a report by BofA Global Research.
Unlike rivals Blinkit, Zepto, and Swiggy’s Instamart, which rely on a dense network of dark stores for 10-minute delivery, JioMart fulfils orders from existing offline retail locations and has not invested in dedicated micro-warehouses.
“Unlike its competitors, RIL is not making dedicated investments in the dark store network. Instead, deliveries are executed from its existing physical retail footprint,” the report noted. “This means fixed costs are already absorbed, and incremental costs are largely limited to delivery.”
Reliance’s over 2,000 stores are part of its quick commerce network and currently serve around 4,000 pin codes, the brokerage said.
However, the report pointed out that dark store coverage across the industry has already crossed 4,000 units and is expected to grow to 5,000–5,500 by next year. “In our view, RIL is unlikely to expand beyond 1,000 SKUs and 4,000 pin codes any time soon. Instead, they may focus on densification and reducing delivery times in existing locations,” BofA said. The brokerage added that Blinkit, Zepto, and Instamart together control 85–90% of the market—down slightly from the 90–95% share they held a few months ago. The remainder is split among smaller players including BigBasket, Flipkart Minutes, Amazon Now, and JioMart.
Drawing a parallel with food delivery, the report said that quick commerce, too, is likely to consolidate.
“Like food delivery, which initially had 7–8 players but eventually consolidated around two, we expect the quick commerce space to narrow down to two or three pan-India platforms. Others may remain strong in regional pockets. We believe Blinkit will be among the top platforms,” the report added.
Flipkart Minutes is aiming to reach 800 dark stores by the end of this year, while Amazon has recently expanded its quick commerce offering to select pin codes in Bengaluru, with plans to enter Delhi-NCR and Mumbai next.
Unlike rivals Blinkit, Zepto, and Swiggy’s Instamart, which rely on a dense network of dark stores for 10-minute delivery, JioMart fulfils orders from existing offline retail locations and has not invested in dedicated micro-warehouses.
“Unlike its competitors, RIL is not making dedicated investments in the dark store network. Instead, deliveries are executed from its existing physical retail footprint,” the report noted. “This means fixed costs are already absorbed, and incremental costs are largely limited to delivery.”
Reliance’s over 2,000 stores are part of its quick commerce network and currently serve around 4,000 pin codes, the brokerage said.
However, the report pointed out that dark store coverage across the industry has already crossed 4,000 units and is expected to grow to 5,000–5,500 by next year. “In our view, RIL is unlikely to expand beyond 1,000 SKUs and 4,000 pin codes any time soon. Instead, they may focus on densification and reducing delivery times in existing locations,” BofA said. The brokerage added that Blinkit, Zepto, and Instamart together control 85–90% of the market—down slightly from the 90–95% share they held a few months ago. The remainder is split among smaller players including BigBasket, Flipkart Minutes, Amazon Now, and JioMart.
Drawing a parallel with food delivery, the report said that quick commerce, too, is likely to consolidate.
“Like food delivery, which initially had 7–8 players but eventually consolidated around two, we expect the quick commerce space to narrow down to two or three pan-India platforms. Others may remain strong in regional pockets. We believe Blinkit will be among the top platforms,” the report added.
Flipkart Minutes is aiming to reach 800 dark stores by the end of this year, while Amazon has recently expanded its quick commerce offering to select pin codes in Bengaluru, with plans to enter Delhi-NCR and Mumbai next.
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