A customer pushes a shopping cart. (Mukesh Ambani. Photographer: Dhiraj Singh/Bloomberg)

Flipkart Brings Its Online Grocery Service To Mumbai 

Flipkart’s launched its online grocery service in Mumbai to deliver everything from staples to milk, expanding the business that e-commerce companies consider the next big frontier.

The company will deliver at 91 pin codes in western and central suburbs, and Navi Mumbai, according to a statement. Mumbai is the fifth city where consumers will be able to order groceries via Supermart online, after Bengaluru, Chennai, Hyderabad and Delhi.

Walmart-owned Flikpart is squaring off with Amazon and Alibaba-backed BigBasket to win over grocery buyers. Their target is the $672-billion retail market that, according to a report by Assocham and MRRSIndia.com, is expected to be worth $1.1 trillion by 2020. And food and grocery, according to Satish Meena, senior analyst at Forrester research, accounts for 60 percent of the overall retail revenue.

The platform’s groceries portfolio includes staples, consumer goods and dairy products, including those sold under its own private label.

Flipkart said it will collaborate with farmers to offer fresh produce, and tie up with local small and medium-sized businesses to expand its product offering. It will also put in place a separate supply chain to only deliver groceries.

Flipkart Supermart will offer free delivery on orders above Rs 600, and the basket size of customers shopping on the its grocery portal should be at least Rs 400. The average ticket size across the other four cities, it said, ranges between Rs 1,200 and Rs 1,500.

Also read: Amazon, Walmart’s India Battle Driven By Food And Hope