The Battle between Reliance and Amazon: Jeff Bezos has been setting hands in almost everything from grocery delivery to insurance to drugs in India. Thus begins the epic clash between Amazon and Mukesh Ambani’s hard-charging Jio platforms.
This U.S. based company has been spreading at the speed at which no one ever has been in the world. Amazon has recently started delivering prescribed medications as well as Over the counter medicines and herbal medicines in Bangalore.
Amazon’s new services!!
Last month, it started providing car and motorbikes insurance with a claim that it finalizes policies under two minutes without any paperwork. After doing so, Amazon has become a first Seattle based online company to do such a thing.
It also organized a restaurant delivery service to its prime members in some parts of Banglore last year. Some reports are there that Amazon will also reveal wealth management services this year.
The battle between Reliance and Amazon
These smart choices of Amazon for expanding its business is colliding with the extension business of Jio’s Parent company, Reliance Industries Ltd. This energy to the retail group is run by one of the wealthiest men of the world, Mr. Mukesh Ambani. He has scored more than $20 billion investment from its supporters Facebook Inc. and Alphabet Inc.’s Google to create an Indian Internet beast.
Reliance Retail Unit on Wednesday announced that they are holding a major stake in India’s top E-commerce pharmacy Netmeds. They are also preparing to add a suite that will provide financial services and products like insurance, brokering, and mutual funds. So, it is going to be a fiery battle between both companies.
“This is going to be one fierce battle,” said Satish Meena, senior forecast analyst at Forrester Research Inc. “Amazon and Reliance want to meet a person’s every need from online retail to financial services to entertainment. It’s a fight for the household’s spending.”
Jeff Bezos, CEO of Amazon, believes India as a key frontier for Amazon, maybe particularly after not being successful in breaking into China. Now, He is facing competition from a homegrown company, Jio which is being backed up by some U.S rivals.
There will be neck to neck fight in the groceries which accounts for 55% of India retail sales, according to Forrester research. While Jeff Bezos is in its early days of providing groceries, it has been steadily delivering groceries through Amazon Pantry and produces via Amazon fresh.
Reliance recently launched Amazon Pantry competition Jio martin 200 cities and it has average order of 2,50,000 orders a day within a week.
Both companies are having a tug of war over one of India’s largest grocery chain Future Retail which controls Big Bazaar stores.
Amazon is also trying experimenting with farm to doorstep delivery to provide fresh fruits and vegetables straight from farms. It is also a competition to JioMart as Ambani claims that its fourth to fifth vegetables are provided directly from farms.
So, it is going to be a tough battle between both companies.