Reliance Industries’ e-commerce venture JioMart, which launched in May last year, has inched closer to market leader BigBasket’s monthly and daily active user base, according to a BofA Global Research report.
“The DAU/MAU ratio, a function of retention, is also highest for Big Basket and JioMart at 17% and 16% respectively,” said BofA which has based the findings on the latest trends of key apps in India according to Feb-21 Sensortower data.
JioMart has cornered a 20% market share among distributors in Bengaluru.
Kotak Institutional Equities surveyed 100 grocery retailers, which have partnered JioMart in Bengaluru, and found that the Reliance Industries’ entity is not only offering cheaper prices to retailers but also has a much larger share of the distribution pie compared to competitors such as Amazon.
This is relevant as most retailers deal with multiple distributors.
Also, food and grocery account for the bulk of sales at these retailers and while JioMart has improved its service levels, analysts believe, there is enough headroom to get more kiranas.
Retailers earn their product margins besides an average delivery charge of Rs15-20 per order.
Surjitt Sahani
