Reliance Retail’s q-commerce ace: Small-town India

IT'S A NEWCOMER in India’s fiercely competitive quick commerce club, but Reliance Retail has already packed a punch that threatens to disrupt incumbents such as Blinkit, Swiggy Instamart and Zepto even as they are scaling rapidly after fresh capital infusions.

- ANEES HUSSAIN

In its recent post-earnings commentary, Reliance said its omnichannel retail network gives it a structural edge as JioMart transitions to a half-hour delivery model, supported by an expanding grid of dark stores.

What gives Reliance a distinct edge in its q-comm pivot is its presence in small-town India, unlike its competitors which are grappling with logistics costs and limited order density.. “In most of the smaller towns, Reliance Retail is the only modern-trade retailer, and in those towns, it would look to capture the market before any of the other q-comm players arrive,” BNP Paribas said in a note.

Reliance’s 3,000-store base and supply-chain backbone allow it to start with ready made coverage, which analysts believe could give it a faster route to viable volumes in semi-urban areas. Industry executives said this expansion could lift overall market growth, even if it raises short-term burn rates. “Reliance’s presence will accelerate adoption in Tier II and III cities,” Nitin Jain, managing director at consultancy Protiviti Member Firm for India, said. “It forces others to expand faster, which benefits customers through better access and pricing,” he added.