What was essential to push Grofers forward and grow one of the biggest eGrocery players in the Indian market in such a short duration of just 4 years has been the entrepreneurial spirit and the foresight that Albinder Dhindsa carries for the market.
Co-founder Dhindsa kept running the day-to-day activities and strategic moves at the helm of affairs within Grofers. From the initial concept to its inception, raising funds to set up the company – Dhindsa led in strategizing the long-term business model and setting up viable supply chains.
With a visionary like Dhindsa at its helm, Blinkit (previously Grofers) grew more than 4 times in India and recently crossed over 100 crore monthly GMV or Gross Merchandise Value. Presently, even though acquired by Zomato, Blinkit is one of the biggest players in the eGrocery industry, especially in the Next Day Delivery Model.
Albinder hails from Patiala in Punjab. He completed his Bachelor’s program at IIT Delhi and started his career as a transportation analyst at URS Corporation, where he worked for 2 years. Later, he joined Cambridge Systematics as a Senior Associate and worked for more than 3 years.
In 2010, he went to the University of Columbia, United States, to pursue his MBA. Here, Dhindsa joined UBS Investment Bank as an associate and worked for 3 months.
After completing his MBA, he returned to India and knew he wanted to work in the food domain. He entered the Indian workforce as the new Head of International Operations at Zomato. Here he gathered enough knowledge and experience to begin working on his dream project, Grofers.
As Dhindsa worked in the food delivery business, he realised that there were loopholes in the logistics sector. While brainstorming with his partner, Saurabh Kumar, he saw that most of the transactions between the local merchants and consumers were mostly unorganized.
As he met and spoke to more and more local merchants with a good customer base, he realized that they struggled to deliver quality goods in a reliable manner. That was the ‘Eureka!’ moment for Dhindsa as he dreamt of a startup that would help with daily problems. That was when the concept of Grofers was born.
According to Dhindsa, the initial purpose of Grofers was to offer on-demand pick-up and drop service from shops around the same neighborhood. The shops in question were mostly pharmacies, grocery stores, and restaurants. Their ideology was to provide customers with a one-stop solution for local everyday requirements.
After realizing that they needed to confine their business only to pharmacies and groceries (there were enough food delivery apps already in the market). They then rebranded their startup as Grofers – a super-local logistics agency.
Albinder Dhindsa – Major Challenges Faced
Towards the end of 2015, Grofers was running at a loss of INR 225 crores with a revenue of only INR 143 crores. For months, Grofers kept hitting losses, but that changed when they launched a mobile app in 2015. Sadly, the scale-up operation had gone haywire and Grofer’s suffered tremendous losses.
Again, Dhindsa identified the loophole and resolved the issue. The problem lies with a complicated and broken supply chain. To help solve this problem, the Grofers entrepreneur set up their own supply chain.
When working for Zomato, Albinder realized that there was a market gap when it came to connecting local merchants with consumers. The idea to create a one-stop solution for all local needs was born and the hyper-logistics company, Grofers, came into existence. Under his leadership, the company was named one of the top 10 start-ups by YourStory.com and was listed in the top 10 promising Gurgaon-based start-ups by IndianWeb2.com.
Grofers faced multiple issues and at one moment was running at a loss of INR 7 Crore on revenue of INR 5 crore. However, Albinder came up with the idea to have Grofer’s own warehouse and supply chain management. During the initial stage, investors did not want to join a business that did not return any profits. But Dhindsa and his partner were able to convince some investors. They started by setting up over 60,000 sq. ft. storage facilities in Gurgaon, Delhi, and Bangalore. Smaller warehouses of 20,000 sq. ft. were set up in cities like Jaipur, Hyderabad, and Chennai.
With a new and improved supply system, business started booming and the average order value shot up from just INR 750 in 2016, to INR 1300.
Albinder Dhindsa – Business Model
Initially, Grofers (now Blinkit) was started as a Business 2 Business (B2B) model but later shifted to a Business 2 Customer (B2C) model. The best aspect of starting Grofers was the endless possibilities of using a hyper-local delivery network. By closing over 500 deliveries per day, Grofers soon became a formidable competitor in the market. By November 2021, the company was delivering 125,000 orders every day under the Grofers’ founder leadership.
After being in operation as an online grocery delivery service, Grofers introduced its express delivery system in India. This was done by building dark stores across multiple cities. In July 2021, the company reported a delivery of over 7000 groceries in under 15 minutes in Gurgaon. A month later after completing over 20,000 under-15-minute deliveries in over 10 cities, it introduced its 10-minute delivery program in over 12 cities. In December 2021, Grofers changed its brand name to Blinkit lining it with its vision to embrace quick-commerce.
But in 2022 in an effort to cut down their burn rate, Blinkit fired nearly 5% of their total workforce. The year before Zomate acquired a 10% stake in the company, and following multiple discussions in June 2022, Zomato acquired Blinkit for $568 million in an all-stock deal. The acquisition was completed in August 2022.
Albinder Dhindsa – Famous Quotes
“We are not too worried about competition entering the space. The space is not small. We provide customers with a service they didn’t know they needed. We will stay focused on the customer.”
“You invest in people, you don’t invest in ideas.”
“Each city is different. Every community requires customization.”
“Our motivation for starting this business was based only on convenience, but we realized soon enough that there are other reasons too why people come online to buy from us.”
FAQ
Who is the CEO of Blinkit India?
The CEO of Blinkit India is Albinder Dhindsa.
Where is Albinder Dhindsa from?
Albinder Dhindsa, the CEO of Blinkit, is originally from Patiala, Punjab, India.
Is Blinkit bigger than Zomato?
Blinkit is currently valued higher than Zomato’s food delivery business, according to Goldman Sachs, with a share price of INR 119 for Blinkit compared to INR 98 for Zomato.
What is Albinder Dhindsa’s education?
Albinder Dhindsa completed his education at IIT Delhi, where he earned his undergraduate degree before pursuing an MBA at Columbia Business School
The famous ride-hailing platform Ola has decided to shut down its used cars division, Ola Cars and its quick commerce business, Ola Dash.
At a time when the quick commerce segment in India is expected to reach $5.5 billion by 2025, growing 15 times its current size, why did Ola decide to close Ola Dash operations?
Ola Cars which allowed customers to buy and sell second-hand cars is also being closed down within one year of its launch. For what reasons Ola Cars was shut down? Find answers to all of these questions in this article.
Ola said that they decided to shut down both of their businesses since they wanted to focus more on Ola Electric. But, is that it? Or is there something more to it? Let’s uncover the exact reasons that led to the closing down of Ola Cars and Ola Dash.
No Laser-Sharp Focus
Ola originally started with a ride-hailing business model. In that sector, Ola became very successful. Although the company has always tried to enter new sectors. This is not the first time that Ola is closing one of its startups.
In 2015, the company founded a food delivery service Ola Cafes, a similar service to UberEats.
Ola Cafe
The company also launched a grocery delivery service Ola Stores. Both of these businesses were shut down a year later because the company was not able to attract a lot of customers.
In 2019, the company again tried to jump into the food delivery service by acquiring Foodpanda. However, the company was not able to gain the expected revenue and the company was shut down.
Even after shutting down 3 of its subsidiaries Ola’s will to experiment didn’t stop. In 2019, the company launched Ola Foods, a cloud kitchen business where the company planned to build 500 facilities across the country. But, only 50 cloud kitchens were set up in 2020.
Unfortunately, Ola Foods also failed and now the company is selling its cloud kitchen equipment at a 30-50% discount.
This year Ola tried to leverage the rapidly growing quick commerce segment with Ola Dash but, as you know, this business failed as well.
All these things show us that the company lacked the laser-sharp focus that any business needs in order to be successful in the market. There is nothing wrong with entering different markets but, you should first understand the market conditions.
Ola has 4 failed startups because the company never understood the competition and market conditions. When Ola tried to enter 3-4 different markets where the company didn’t have any expertise the company was not able to properly strategize and allocate resources to different sectors.
On top of that, Ola’s primary ride-hailing service was incurring heavy losses as well. A lot of drivers were leaving the company due to huge salary cuts. Customers as well were not using Ola due to a surge in prices.
Due to all of these reasons the company had no option other than closing down Ola Cars and Ola Dash.
Uncertain Nature of Quick Commerce
As we all know all the companies which are in the quick commerce segment are facing heavy losses. Be it Dunzo, Zomato or Swiggy Instamart.
Ola was also one of those companies which were incurring heavy losses in the quick commerce segment. But, why are these companies incurring losses?
There are two reasons for this: No customer loyalty and heavy discounts. Let’s understand both of these aspects in great detail.
To acquire customers in the quick commerce segment, you need to give heavy discounts to customers on groceries and other items in order to encourage them to try the app. When companies are giving discounts they are not making any profits. But, still, the companies are giving heavy discounts because this is the only way to make customers habituated to your app.
But, here the question arises: How long can you give customers discounts? At a certain point in time, any company like Zomato or Ola Dash have to stop giving discounts.
As customers are using their service just for discounts, there is no customer loyalty. Due to this Ola was not able to make a loyal customer base.
Apart from this, the increased competition in the market from newly launched startups like Zepto and Dunzo made things worse for Ola and the company decided to shut down Ola Dash.
Future Plans of Ola
The quick commerce segment is booming in India. There is a tough fight going on with so many startups like Zepto, Dunzo and Swiggy Instamart in order to capture the quick commerce market in India.
In December 2021, Swiggy invested $700 million into Instamart.
On the other hand, Zomato recently acquired Blinkit, a quick-commerce grocery delivery platform for Rs 4,447.
Zepto, a very popular 10-minute delivery platform, raised $200 million, taking the total valuation of the company to $900 million.
If so many companies are draining millions of money in this sector why did Ola decide to shut down Ola Dash?
Ola said that the company wants to focus more on Ola Electric. Instead of dabbling between multiple businesses Ola has reassessed its priorities and decided to use all of its resources in strengthening its electric sector.
Ola Car’s infra, technology and capabilities will be repurposed towards growing Ola Electric’s sales and service network, the company said in a statement.
Ola’s decision to shift its complete focus on the electric business makes sense because, within months of its launch, Ola Electric has already become India’s largest EV company.
Ola Electric
Ola Electric is delivering huge profits for the company, Rs 500 crore revenue in its first two months of FY 22-23. The company is on its way to surpassing a $1 billion run rate by the end of this year.
Due to all of these positive correlations the company has understood that if they want to stay in the race for a long time it must focus on its electric scooters. Ola has also planned to launch its second electric scooter before the end of this year.
Apart from focusing on its electric sector the company also wants to invest in new areas like cell manufacturing and financial services. To enter the world of fintech Ola has acquired Avail Finance, India’s first neobank that aims to provide financial services to the blue-collared workforce.
Conclusion
As Ola is now allocating all their resources towards Ola Electric it would be interesting to see the future of this company. Even though Ola Electric is India’s largest EV company, it did face a lot of problems in the past for its faulty batteries.
The competition in the electric sector has increased tremendously with players like TATA Motors, Mahindra, Okinawa, Tunwal and Kia Motors. Ola needs to continuously innovate and understand the market conditions if they want to be successful in the EV sector.
FAQs
Why did Ola shut down Ola Cars and Ola Dash?
Ola decided to shut down its used car division, Ola Cars and its quick commerce business, Ola Dash because the company wants to use all of its resources in strengthening Ola Electric. Ola Car’s infra, technology and capabilities will be repurposed towards growing Ola Electric’s sales and service network.
What is Ola Cars?
Using Ola Cars customers could buy and sell their used cars. Under this business, the company would purchase used cars from people and from the company’s driver-partners and would sell them to interested buyers.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Samsung.
In the middle of World War 2, when the nations were fighting for their alliances, there emerged a small trading company named Samsung Sanghoe in the Empire of Japan (today’s South Korea). Starting as a business that deals with groceries, fish and noodles, Samsung widened its path into various industries. The company has now become the most popular and successful conglomerate brand worldwide.
Samsung’s steady growth and expansion strategies has given the company the 8th highest global brand value. One of its subsidiaries, Samsung Electronics, was ranked 15th in the Fortune Global 500 list for 2021. The beginning of Samsung, its entry into the conglomerate industry, hardships faced during wars and the success it gained despite these challenges are all so uplifting. Read further to know the complete success story of the Samsung Group.
Samsung is a multinational conglomerate company based in Seoul, South Korea. The company was founded by Lee Byung-Chul in 1938. It was initially established as a trading company. The company today operates various businesses like shipbuilding, telecommunication, healthcare services, hospitality, clothing, construction, entertainment, etc., through its subsidiaries.
Of all the businesses it runs, Samsung is well-known for its Electronics and Home Appliances. The brand’s mobile manufacturing comes under this division which is controlled by Samsung Electronics Co. Ltd. It is one of the most valued brands worldwide. The Samsung Group contributes more than 15% of South Korea’s GDP.
Samsung – Industry
Samsung belongs to the conglomerate sector which refers to a multi-industry company. In other words, a conglomerate company is the one that runs different independent businesses under its control. Such companies are huge and multinational.
The United States has the most number of conglomerates followed by India. Usually, the US and the European companies are the ones to top the list of ‘World’s Largest Conglomerates’ in terms of market value. But the research shows that Asian companies are on the rise in recent years. As of April 2021, Reliance Industriesis said to be the world’s 2nd largest conglomerate company with a market value of $164.9 billion as reported by Statista.
Samsung – Founders and Team
The following are the founders and key people of Samsung Group:
Lee Byung-chul
Lee Byung-Chul – Founder of Samsung
Lee Byung-Chul is the founder of Samsung. He was born in Uiryeong, South Korea on 12th February 1910. Byung-Chul belonged to a wealthy family and is considered to be one of the most successful businessmen in South Korea. He established Samsung in 1938 and led the company in an efficient way which in turn made it the largest business group in the country. Lee Byung-chul passed away on November 19, 1987, at the age of 77.
Lee Jae-Yong
Lee Jae-yong – Vice-Chairman of Samsung Electronics
Lee Jae-yong is the grandson of Byung-chul and is currently the Vice-Chairman of Samsung Electronics. He succeeded his father Lee Kun-hee in 2020. Jae-yong earlier served as the Chief Customer Officer and Chief Operating Officer of the company. He is considered to be the fourth wealthiest person in South Korea. Lee Jae-yong was convicted and arrested on the grounds of corruption and was released in 2021.
Jong-Hee Han
Jong-Hee Han – CEO and Vice-Chairman of Samsung
Jong-Hee Han is the new CEO and Vice-Chairman of Samsung from 2022. He earlier served in several executive positions in the company. The company said that Jong-Hee would lead the new SET division of Samsung which brings TVs, electronics and mobiles under its management.
Kye-Hyu Kyung
Kye-Hyu Kyung is the president and another CEO of Samsung. He is said to head the Device Solutions division of the company. Dr. Kyung was the CEO of Samsung Electro-Mechanics between 2020 and 2021. He was a part of Samsung for 30 years and is known to be an expert in semiconductor designs.
Samsung – Startup Story
Samsung, when it was established in 1938, wasn’t meant to be a leader in electronics or a conglomerate company. It was started as a small trading company that deals with groceries. Lee Byung-chul procured and exported noodles and other goods to China. The company was then named ‘Samsung Sanghoe’ and functioned with around 40 employees. This was the start of one of the largest conglomerates in the world.
Samsung – Mission and Vision
Samsung has a mission “to devote its talent and technology to creating superior products and services that contribute to a better global society.” The company wanted its customers to receive only the best products and services. It is determined to achieve that quality by using its finest resources, both human and technology. Samsung follows strict ethical values and a code of conduct in all its operatives across the globe. It believes that innovation and intelligence combined with good values result in good business and this serves to be the vision of the company.
The logo that Samsung uses currently is the one that was enhanced and improved in 2005 from its previous ones. It was carefully assessed and redesigned based on how human eyes would judge them. Everything right from the color, design, letter spacing, height and letter sharpness were taken into consideration. The company’s motive is to possess a logo that gives visual harmony to the people. Samsung has changed its logo six times over the years since its inception.
Samsung Logo Changes
Samsung – Business and Revenue Model
Since Samsung is a conglomerate entity it is involved in various business operations. Like any other business, Samsung sells its products and services either online or through offline platforms. The company’s areas of operations include electronics, home appliances, advertisements, shipbuilding, engineering and construction, life insurance, biopharmaceuticals, and healthcare.
Samsung generates the majority of its revenue through its electronics and semiconductor business. The product quality and its cost structure are the major success factor for the company’s growth. In 2021, Samsung’s Semiconductor business turned out to be the biggest revenue generator followed by smartphones and display panel businesses.
Samsung – Funding
Since Samsung has an 84-years long history most of its businesses were funded by the parent company or its affiliates. However, Samsung Electronics received two rounds of funding in 2017. The first round of funding went through on May 29, 2017, and the company raised $447.5 million through the round Samsung Electronics Supplier Financing Fund.
Samsung Automotive Innovation Fund round is the second one that was held in September 2017, where the company raised $300 million.
Samsung – Acquisitions and Investments
Samsung Group has made hundreds of acquisitions and investments over the years. These investments by Samsung are made by its subsidiaries through which the company runs its entire operations. The electronics division has made 37 investments and 46 acquisitions whereas Samsung Ventures has made 256 investments in startups.
Investments
The following is the list containing some of the recent investments by the subsidiaries of Samsung group in several of their related businesses.
Date
Company Name
Invested Amount
June 21, 2022
NeuReality
–
May 11, 2022
Carbon Clean Solutions
$148M
May 3, 2022
SLAMcore
$16M
April 20, 2022
Double Me
$25M
April 7, 2022
DigiLens
$50M
March 22, 2022
Yug Labs
$450M
March 29, 2022
Jaguar Gene Therapy
–
March 14, 2022
Raven
–
February 17, 2022
DiaMon Tech AG
$5.2M
December 28, 2021
FloatMe
$16.2M
November 10, 2021
TriEye
$74M
November 4, 2021
DigiLens
–
September 29, 2021
QC Ware
$25M
September 21, 2021
HomeCourt
$25M
September 14, 2021
XPerience XR
–
July 26, 2021
Lucid Motors
$4.5B
June 23, 2020
NexAtlas
$200K
January 28, 2020
Directly
$20M
November 27, 2019
42Maru
$89K
October 15, 2019
Antaria
–
Acquisitions
The following are some of the most significant and recent investments of Samsung Group:
Date
Company Name
Amount
April 2022
Bioepis
$2.3B
January 13, 2020
TeleWorld Solutions
–
January 28, 2019
Corephotonics
$155M
October 17, 2018
Zhilabs
–
March 6, 2018
Kngine
$275K
November 28, 2017
Fluenty
–
July 10, 2017
innoetics
–
June 16, 2017
VRB
$5.5M
February 15, 2017
Melaud
–
February 3, 2017
Perch
–
November 23, 2016
QD Vision
–
October 5, 2016
Viv
–
August 14, 2014
SmartThings
$200M
January 2013
NeuroLogica
–
May 9, 2012
mSpot
–
Samsung – Subsidiaries
Samsung runs its conglomerate business operation through 12 of its major subsidiaries. Here is the list of those companies:
Samsung Electronics
It serves to be the forerunner for the entire Samsung Group. All the consumer electronics and home appliances like TVs, ACs, refrigerators, smartphones, semiconductors, etc., come under this division. It serves to be the leading revenue generator for Samsung.
Samsung Electro-Mechanics
This company manufactures mechanical and electronic parts for various companies. Its products include parts for mobiles, chips and camera modules.
Samsung SDI
Samsung SDI is involved in the production of energy solutions like rechargeable batteries for various electronic materials. It was established in 1970.
Samsung SDS
SDS stands for Samsung Data Systems which provides IT solutions and various technical outsourcing services. It is establishing itself in Artificial Intelligence, Blockchain and various other recent technological developments.
Samsung Engineering
Samsung Engineering was earlier known as Korea Engineering which was established in 1970. It is involved in the design and execution of chemical, petrochemical, oil refinery, fertilizer and power plants across the globe.
Samsung C&T Corporation
This is a construction company that was responsible for building various popular structures and civil projects across the world. Burj Khalifa, Petronas Towers and Mersey Gateway were all built by Samsung C&T Corporation.
Samsung Everland
It has been the subsidiary of Samsung C&T Corporation in December 2013. This company deals with food, textile, fashion and resort businesses. It operates in more than 50 countries.
Cheil Worldwide
Cheil is an advertising agency under Samsung Group and is one of the world’s largest in terms of revenue. It is known for its creativity and has several big companies like Coca-Cola, Nestle, Adidas, Microsoft, etc. as its clients.
Samsung Life Insurance
Samsung Life Insurance is a Fortune 500 company and is the largest and most valuable company in South Korea. It offers health and life insurance and annuity services to people.
Samsung Heavy Industries
Shipbuilding is the primary activity undertaken by Samsung Heavy Industries. It is reported that around 30 ships are being launched every year from its docks. The company’s other activities include procuring and transporting heavy machinery for various industrial and construction activities.
Samsung Fire and Marine Insurance
This company is involved in providing insurance and financial services for transportation and business activities. It provides automobile insurance, general insurance, enterprise risk management insurance, etc.
Samsung Biologics
Samsung Biologics is a biopharmaceutical company that develops medicines and antibodies for various diseases. This company has an R&D center in California and has obtained several ISO certifications.
Samsung – Growth
Samsung’s Revenue Growth
Samsung was involved in the trading business for 12 years until 1950 when the Korean war broke out. After the end of the war in 1953, Byung-chul decided to expand the business and focused on textiles. As a result, he started a woolen mill which was the biggest in the country at that time. The industrialization of that period and the government’s Protectionist policies helped him in boosting his business.
Samsung started acquiring diverse businesses by the late 1950s and took over three large banks in Korea, an insurance company, an industry that manufactures cement and fertilizers, department stores, an oil refinery, etc., over the years. It was only in 1969 that Samsung entered the electronics industry. Today the growth of Samsung Electronics is astounding. It tops the global rankings in mobile phones and electronics. The company also entered the telecom business in 1980.
After acquiring a lot of businesses, Samsung started creating subsidiaries to group those companies for efficient management. The death of its founder Lee Byung-chul in 1987 led to disagreements in management and Samsung was separated into five groups. Each group went away with its related industry where Samsung Group held back its electronics business in addition to the construction, security, energy and insurance business.
The company started to focus on electronics and semiconductors after its separation. It innovated and introduced many equipment and devices which helped Samsung achieve a successful reach in the global market. Samsung also stepped into the aerospace industry in 1999 and is involved in the production of aircraft engines and gas turbines.
Before establishing its smartphone unit in 2007, Samsung started developing its set-top box technology. The first Samsung smartphone was released in June 2009 and within 3 years of its introduction, in 2012, Samsung Electronics became the largest producer of smartphones in the world. Then the company started creating more benchmarks and achieved many milestones in smartphone production and sales. Today, Samsung has the world’s largest mobile manufacturing plant which is located in Noida, India.
Samsung – Challenges Faced
Samsung was accused of several labor abuse and child labor law violations. Few of the suppliers of Samsung were brought under this allegation. The company investigated the matter and terminated business relationships with those suppliers that were confirmed to be violating laws.
In 2012, Samsung was taken before a court of law by Apple for the infringement of six of its patents. Apple claimed damages for $2.5 billion. Samsung, in return, accused Apple of violating its patents. Finally, it was ruled that Samsung had to pay damages of $1.05 billion and also said that Apple did not violate any patents. The ruling also rejected Apple’s plea to ban the selling of eight models of Samsung phones.
A major challenge that Samsung faced was after the death of its founder Lee Byung-chul in 1987. The company was split into five groups. Despite the hardships, Samsung focused on the growth strategies with the industries under its management and established itself as a global brand.
Samsung – Competitors
Since Samsung is a conglomerate company it has numerous competitors in all the industries of its business. Here are a few of its top rivalries:
Apple
As we all know, Apple is a popular brand that is involved in the manufacture of consumer electronics like mobile phones, tabs, laptops, etc. There have been direct conflicts between Apple and Samsung nevertheless they have a great competition among their products.
LG Corporation is another multinational conglomerate from South Korea similar to Samsung. LG is popular for its TV, computers, vehicle components, and other home appliances. This company is the second-largest manufacturer of TVs in the world. The first position is retained by Samsung.
‘Together for Tomorrow’ is a new vision that Samsung has announced in 2022 for building a sustainable future. With this initiative, the company is planning on building technology that leaves no footprint or less impact on the environment. Also, higher attention would be paid to the disposal of products after use. The company is also aiming to reduce carbon emissions from its plants.
Samsung is also on the move to nullify the power consumption of its TVs and phone chargers during standby. These devices are said to consume power when they are switched on and not in use. By 2025, Samsung is determined to reduce its device’s standby power consumption to zero.
Samsung wanted to fulfill the diverse needs of its customers. To achieve this the company is researching ways to provide a customized experience for its users like modifying the devices that suit their lifestyle. Samsung has made an announcement on this at its recent CES 2022 event.
FAQs
When was Samsung founded?
Samsung was founded in 1938.
Who is the founder of Samsung?
Lee Byung-Chul is the founder of Samsung.
Who are the top competitors of Samsung?
Some of the top competitors of Samsung are:
Intel
Apple
LG Electronics
What is the revenue of Samsung?
Samsung’s global revenue is $244.4 billion in 2021.
What is the number of employees working for Samsung?
In April 2020, Reliance Industries Ltd launched JioMart, an e-commerce website on the Jio platform. JioMart is an online grocery shop that delivers 50,000+ grocery items at a discount to your home via a fast delivery system. It is based on a demand-driven model. The website began operations in Thane, Kalyan and Navi Mumbai and eventually expanded throughout India. Customers responded positively to the service, and the firm is currently expanding its presence in other Indian cities and villages. JioMart has developed a digital pan-India infrastructure in collaboration with local Kirana stores and its retail outlets.
Instead of employing a warehouse infrastructure, the firm works with local shops. The grocery goods are sourced by these shops and delivered to the customers.
Reliance plans to compete with existing grocery platforms in India, such as Swiggy, BigBasket, Zomato, Grofers, and others, via JioMart. Some interesting facts regarding the e-commerce platform are listed below.
JioMart, unlike its competitors Flipkart and Amazon, does not stock its items in massive warehouses. To supply merchandise, they have partnered with local retailers or Kirana stores.
Jiomart Selling Platforms
JioMart Grocery Shopping Platform
Fresh fruits and vegetables, groceries, snacks, drinks, home & household basics, beauty & hygiene, and infant care are just a few of the supermarket items available at JioMart.
You may purchase and order things using the Jiomart website and app. Previously, Jiomart teamed with Mark Zuckerberg through Facebook-owned WhatsApp, and the two companies joined together to improve JioMart’s service and reach out to WhatsApp customers. Users may submit orders over Whatsapp, which would make it easier for clients who are not comfortable using digital platforms to shop from JioMart. As a result, the service became much more user-friendly.
How Does Jiomart Work With Retailers?
Jiomart links with local businesses and delivers items to clients by obtaining them from the closest store in the customer’s neighbourhood. To place the order, the consumer will utilise their official WhatsApp number.
The user will get a bill that must be paid in cash after confirmation. When the order is ready, the client will be notified and instructed to pick up the order from the store.
Any retailer can easily be a seller at JioMart. To become a vendor on JioMart, a retailer must first register. Store owners may use the JioMart app to display their inventory, take orders, make deals, and manage online sales after registering. JioMart would make sure that vendors using its platform have a pleasant selling experience. Retailers will be provided with the necessary assistance to ensure that items are delivered to customers promptly.
Why Is Jiomart Such a Strong Competitor?
In comparison to competitors such as Amazon, Jiomart provides lower costs to merchants and has a significantly greater portion of the distribution pie. JioMart, unlike other e-commerce platforms, works with small businesses. It serves as a distributor, distributing items to merchants and fulfilling orders for JioMart through its small shop network.
JioMart presently delivers 250,000 orders every day, and the e-commerce site has ambitions to expand into electronics and other categories shortly. At the moment, JioMart is offering all food goods at a discount of 5% off the MRP. It is even less expensive than Amazon, Flipkart, Zomato, and Swiggy. JioMart also provides a larger selection of items than other e-commerce sites and no order limits.
The firm has a 5% organised segment share in fashion retail, which is more than 50% greater than competitors like Aditya Birla Fashion (ABFRL).
Jiomart’s Features
Every e-commerce site has a minimum order requirement to qualify for free delivery. However, Jiomart has no such need. According to the firm, there is no minimum order for free home delivery. The firm plans to deliver orders placed on Jiomart within one to two hours, with large purchases arriving the same day or the following day. Every product on JioMart has a minimum discount of 5% and can go up to a maximum value of 50%.
The firm should accept things returned without inquiry, making the service more customer-friendly.
Mukesh Ambani’s Jiomart Aims
JioMart was not an impulsive action by Mukesh Ambani but rather a well-thought-out strategy to grab the lucrative e-commerce market. By 2021, the domain is expected to be worth $1.2 trillion. His superb effort reflects his aim to compete with global e-commerce behemoths like Amazon and Flipkart, controlled by Walmart.
Jiomart Supported through Reliance Aquisitions
Reliance Acquisition Supported JioMart
In 2019, JioMart was supported by the Reliance acquisitions of Grab A Grub and C-Square.
Grab A Grub is a logistics firm based in India that was formed in 2013. It was purchased for $14.9 million in March 2019 by Reliance Industrial Investments and Holdings Limited to assist Jio Mart logistics. Grab was selected because it has a track record of success with mega-brands, including McDonald’s, BigBasket, Myntra, Amazon Now, and Swiggy.
C-Square Info Solutions Private Limited, created in 2002, offers software solutions for e-commerce, retail, salesforce, and other industries. RIIHL purchased it in March 2019 for $11.56 million. RIL made this strategic decision to boost JioMart’s business strategy.
Jiomart’s Business Strategy
The Chinese e-commerce giant Alibaba Group Holding Ltd pioneered Jiomart’s business strategy. It offers online to offline model (O2O). A user looks for a product or service online but purchases it through an offline channel under the O2O model.
Jiomart’s Competitors
Because of its massive success, Ambani’s Jio cellular service pushed a lot of other cellular networks on the verge of going out of business. This might be the case for Ambani’s current endeavour, as well as all of its competitors.
JioMart may have Amazon and Flipkart on its radar, but in its current form, the firm will be a bigger nuisance for Grofers and BigBasket, India’s leading grocery delivery companies- Swiggy and Zomato, too, have just entered the grocery delivery market in India.
Conclusion
With the advent of the largest player in the Indian industry, incumbent grocery delivery businesses face a major challenge. JioMart has various advantages over its competitors, in addition to having a well-known brand name.
Jio’s entry into the telecom industry sparked a revolution and changed the tables. Big names like Airtel and Vodafone, who had ruled for years, were knocked off their perches. It remains to be seen if Jio will be the market leader in online grocery delivery.
FAQs
Who is the founder of JioMart?
JioMart is a product of Reliance Industries, owned by Mukesh Ambani.
When was JioMart launched?
JioMart was launched in areas near Mumbai in April 2020. It was successfully launched in 200 cities in May 2020.
Can non Jio users use JioMart?
Yes, JioMart can be used by non Jio customers.
What is JioMart model?
JioMart works as O2O model (Online to Offline model) where users can order online and order gets delivered offline.
Rishabh Rathi
