Flipkart Aims To Take A Significant Portion In Grocery Segment
Homegrown e-commerce major Flipkart is locked in an intense battle with Amazon, Flipkart is looking at re-entering the grocery segment that accounts for a significant portion of India's retail industry
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Homegrown e-commerce major Flipkart is locked in an intense battle with Amazon, Flipkart is looking at re-entering the grocery segment that accounts for a significant portion of India's retail industry.
"Yes we will get into grocery... 80 per cent of units bought in India is grocery... $400-600 million is grocery market, so we have to get into it," Flipkart CEO Kalyan Krishnamurthy said at a TiE event in New Delhi.
This will be the second attempt into the grocery segment for the Indian firm.
In October 2015, Flipkart had launched a separate groceries ordering app called Nearby for delivering fruits, vegetables, soaps and other staples from supermarkets to customers. However, following a weak response, Flipkart closed the business a few months later.
Flipkart's rival Amazon India has launched its grocery ordering app, Amazon Now last year. The app is now available in four Indian cities including Bengaluru, Delhi-NCR and Mumbai. Amazon plans to invest around $500 million in e-retail of food products in India.
As per industry reports, the online F&G delivery market is estimated to be around $600 million in India and pegged to touch $5 billion by 2020. The online food and grocery segment also includes players like BigBasket and Grofers, who are also looking at expanding their operations.
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