Ola is now planning to shutdown its grocery business, Ola Store, which was launched in July 2015.
Flipkart recently shutdown Nearby (plus Paytm) the grocery business citing lack of focus as the key reason.
And while Indian companies are shutting down grocery business, Amazon has launched its grocery service in Bangalore and will deliver products in 2 hours. Also, Reliance is adding 1.5 Lakh Vendors For New E-commerce Venture; Will Start Grocery Soon.
What’s Really Happening With Grocery Business?
Apart from high delivery cost, none of the players actually cared to strengthen the food chain. None of them actually could create a need in the market.
- Flipkart’s nearby had less than 500K downloads.
- Ola store has less than 500K downloads.
- Amazon has less than 50K downloads, so far.
- Grofers shutdown operations in 9 cities.
Difficult to break the food chain of mom-and-pop stores?
Recommended Read : Who Will Win The Grocery Retail Space? Inventory-Less Model? [Analysis]
