After a failed attempt in online groceries in 2016, Flipkart has once again launched the service under the moniker Supermart. The company has launched Supermart in Bengaluru and plans to expand the service to other metros by the end of this year, according to a Business Standard report.
The e-tailer will invest $264 million in the service over the next three years, Economic Times reported.
“Grocery is the biggest category in the overall retail market and also a major part of the consumer wallet,” Manish Kumar, head of grocery at Flipkart said. “Consumer interaction in the category happens every week and transactions per customer are also very high. So this is a pretty big opportunity and we want to imagine grocery for e-commerce,” he added.
Following suit of Amazon who had set up 15 fulfilment centres in India to assist in delivery of groceries, Flipkart has set up a 150,000 square foot centre in Bengaluru. The e-tailer has also employed a delivery fleet for groceries.
While its competitors, BigBasket and Amazon have already established themselves, the company had not launched the service as they wanted to launch a unique and well-rounded model.
Flipkart believes that they are not late to the market as only 0.5 percent of the grocery market is using the online channel.
The company will offer open box deliveries so that the customers can check the product immediately, this will also do away with the problems of returns.
The e-tailer, in which Walmart will have a $16-billion investment, will also launch its own products under Flipkart Supermart Select label.
However the Supermart service will not be extended to fresh food products as the company believes they require more innovation to deliver fresh fruits and vegetables.