The e-commerce boom seen in the country over the past few years is unprecedented, especially in the field of electronic devices, apparel and smartphones. However, customers have now become accustomed to such online services, with a multitude of e-commerce platforms catering to such needs. Considering that these items are abundantly available online, all major e-commerce players and even new ones are aiming at a completely new segment to maximise profitability. Having said that, the latest buzzword among all e-commerce juggernauts is grocery – milk, eggs, vegetables and many other items.  

As of now, there are only a few prominent names in the grocery delivery business including a few local ones as well. However, as the demand for online grocery increases, major players are now planning to foray into the segment. Major names such as Amazon, which rebranded its online grocery business recently, and arch-rival Flipkart has plans to disrupt the domain and reap the benefits. While Flipkart is yet to share more details about its new venture, Amazon’s Prime Now already has over 10,000 products, eligible for express and non-express delivery based on the frequency of orders.

This is a clear indication that there has been a boom in the online grocery business, and the major e-commerce players are throttling ahead to dethrone the local delivery stores. The same trend has been observed in developed economies such as US and UK as well. While some Indian customers argue that online grocery services would not be able to cater to their needs of providing ‘fresh grocery’, the tech-savvy generation is more optimistic about such services.  

Amazon versus Flipkart-Walmart: How online grocery will decide the winner

Alibaba-backed BigBasket, one of the biggest online grocery shopping portals in the country, has made a significant mark in the segment, registering a revenue of over Rs 1,000 crore in FY17. Another online grocery delivery company, Grofers, is also doing well and has recently raised capital to take on the major players entering the $40 million e-grocery business.   

In fact, the market for online grocery has been so profitable that Kishore Biyani’s Future Group, one of the leading retailers in India, is also aiming to enter the field, reported The Economic Times.  

According to the report, the Future Group would initially focus on online doorstep delivery of eggs, milk and bread each morning to subscribed users. If the report is anything to go by, the service will be launched in metro cities within the next two weeks and will be facilitated by 1,000 outlets.  The group plans to expand its operations and add more essentials to the cart in days to come.  

Biyani told the publication that the services could generate as much as Rs 20 lakh worth additional revenue per store. Considering the fact that as many as 1,000 outlets are gearing to provide services, monthly revenue from sales would reap massive profits. In fact, food delivery major Swiggy is also looking to initiate hyperlocal grocery delivery services to up its profits.   

However, all eyes will be on Flipkart’s entry as it is backed by one of the largest US-based retailers Walmart. Best known for its grocery stores, department stores and hypermarkets in the US, Walmart would surely infuse some of its expertise to kickoff the business successfully. Considering all the facts, it seems that online grocery is definitely the buzzword among major e-commerce players but it remains to be seen if customers in India can adapt to the transformation.