Facebook and RIL have launched a pilot for the latter’s online grocery shopping platform JioMart to sell products via Facebook-owned messaging platform WhatsApp. This development comes just a few days after Facebook’s announcement of a $5.7 billion investment in RIL’s telecom subsidiary Reliance Jio Platforms. The JioMart-WhatsApp partnership is one of the key highlights of the Facebook-Jio deal.
While the pilot has been launched in selected suburban areas in Mumbai, India, the companies expect the service to reach all regions of the country in the future, according to business news provider Moneycontrol.com.
How Does the “Ordering System” Work?
Under the “ordering system” on WhatsApp, users send a message to a specified number, which generates a link that opens up a mini store on the phone’s browser, displaying a catalog of available products. Once an order is placed, JioMart assigns it to a neighborhood store along with the details of the customer, to whom it sends an invoice via WhatsApp.
The service has become operational in three suburban areas in Mumbai—Navi Mumbai, Thane and Kalyan—and over 1,200 neighborhood stores are participating in the program.
Currently there is no option to make digital payments, and only cash on delivery is being offered as a payment option.
Facebook’s Investment in Reliance Jio
On April 22, 2020, Facebook announced its investment of $5.7 billion for a 9.99% stake in RIL’s telecom subsidiary Jio Platforms Limited, making it the largest minority shareholder in the venture. Jio Platforms is India’s largest telecom network, with a subscriber base of more 385 million.
The deal, which values Jio at some $65.95 billion, will offer Facebook a strong platform for growth and will provide Jio access to WhatsApp’s 400 million users in India and an opportunity to cut debt significantly. RIL management stated that the deal represents the largest foreign direct investment in the technology sector in India and the largest investment for a minority stake by a technology company anywhere in the world.
RIL’s JioMart Launch
RIL launched JioMart in January this year as a platform that focuses on offering grocery shopping by way of collaboration with local neighborhood stores. The company promoted the platform by offering benefits such as free home delivery with no minimum order value, a “no-questions-asked return policy” and “express delivery.” RIL also offered savings of up to ₹3,000 (around $40) for pre-registering on the platform before its launch.