Flipkart looks to sell movie tickets, expand online groceries business
India’s largest online retailer Flipkart Ltd is expanding its fledgling online groceries business even as it plans to sell movie tickets ahead of a proposed takeover of the company by American retailer Walmart Inc., three people aware of the developments said.
Flipkart will also soon enter the food retail business, the people mentioned above said.
Arch-rival Amazon India has piloted its food retail business in Pune.
Flipkart will also launch consumables and FMCG (fast moving consumer goods) products under its Billion private label, which is the brainchild of founder and executive chairman Sachin Bansal, the people cited above said, on condition of anonymity.
Billion was launched in mid-2017, as part of a push to bring new users to Flipkart by selling low-priced products.
The Bengaluru-based retailer has earmarked several hundreds of millions of dollars to grow its online groceries business, the people mentioned above said.
It is pushing hard to expand the grocery business to avoid losing more ground to the likes of Alibaba-backed Bigbasket, Grofers and Amazon India.
Flipkart, which is in talks with Walmart to sell a majority stake to the American retailer, is expected to leverage Walmart’s capabilities in the grocery business after the deal is completed.
Grocery is currently an insignificant revenue source for Flipkart but an important long-term opportunity.
In late 2016, Flipkart re-hired two former executives Manish Kumar and Nitin Rajput to build its grocery business.
Flipkart is betting that sales of everyday household items will keep shoppers coming back to the company’s platform. So far, online grocery sales have taken off slowly.
Market research firm RedSeer Consulting Pvt. Ltd estimated it to be barely $1 billion in 2017.
Overall, online retail grew 23% to $17.8 billion last year, up from $14.5 billion in gross merchandise value (GMV) in 2016.
But, given the high order volumes and repeat purchases of groceries, the sector is expected to be a key battleground for online retailers; the largest internet investors in India are betting that online groceries will turn into a multibillion-dollar category over the next three to five years.
Flipkart’s entry into movie tickets comes after the company’s proposed minority investment in BookMyShow didn’t materialise late last year.
Mint couldn’t ascertain whether Flipkart will sell tickets on its own platform, launch a separate app or whether it will roll it into the host of services that are available on PhonePe, Flipkart’s payments app.
Flipkart did not respond to an email seeking comment.
Enter your email to get our daily newsletter in your inbox
- The 15th Finance Commission has recommended that states be given 41 per cent of the divisible tax pool of the Centre during the period 2021-22 to 2025-26, which is at the same level as was recommended by the 14th Finance Commission.
- Here’s a list of some of the tasks which need to be performed by taxpayers before March 31
- In an interaction with members of the Indian Women’s Press Corps (IWPC), Sitharaman said that consumer sentiment about the tax burden on auto fuel was understandable.
- Nearly 1.1 million vaccine doses were administered to people above the age of 60 and those in the 45-59 age group till Thursday.
- Mohapatra said the idea came during Modi’s meeting with Marriott International president and chief executive Arne Sorenson, who complained about the complex regulations in starting and running a hotel in India.
- ICICI Bank’s move comes days after rival lenders such as State Bank of India (SBI), Kotak Mahindra Bank and Housing Development Finance Corp. Ltd cut their home loan rates.
- These votes will have to be disclosed to unit holders under existing regulations. Voting will be at the MF level (rather than scheme level).
- Supply of vehicles from Maruti Suzuki India Ltd—as part of the alliance with Suzuki Motor Corp—has helped Toyota increase its domestic market share in the premium hatchback and entry-level SUV segment, where it was not present before.
- The top three states by GVA were Maharashtra, Gujarat, and Tamil Nadu. They had a share of 41% in the total GVA. Rural India added nearly as much GVA (49%) as urban India (51%).
- Using average consumption shares to calculate the burden of an indirect tax has a problem.