Reema Khurana, Susmi Routray
Ivey Publishing (W16446-PDF-ENG)
July 08, 2016
In 2014, the grocery and grocery industries in India saw the boom of the online grocery market. Previously, existing e-commerce players had largely avoided the online grocery market due to their complex logistics needs and problems related to last-mile delivery or reaching customers in remote areas. The rise of online grocery stores has raised concerns among brick-and-mortar stores, particularly local kirana (corner stores), of becoming obsolete in the future. With little or no technology adoption, these kirana stores had no way to connect. Grofers saved these local stores with a grocery m-commerce model that promised 90-minute on-demand delivery. With very low margins at the grocery store compared to lifestyle products and the complexity of last mile delivery and returns, it remained to be seen if Grofers could conquer a niche in the food industry with its innovative model. How viable and sustainable was a mobile commerce company like Grofers in view of the low barriers to entry and the easily replicable business model?
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