The motive behind the move, apart from swelling its business, is to take on online retailers and grocery stores that have disrupted revenues of brick-and-mortar stores. It is also seeking to reposition itself into something that looks like a startup, the publication reported.
Apart from online grocery stores, merchandise e-retailers have also introduced these services. Amazon India, for instance, introduced Kirana Now, while Flipkart is using its logistics arm to deliver goods from the neighbourhood stores, the report added.
Biyani has been very vocal for his criticism of online retailers, especially on pricing issues.
The industrialist stated that online fashion model will not click as it does not sound appealing to him. "The cost of doing business in online fashion retail is not profitable...In the online model, the minimum cost of acquiring a customer is 20% of total sales, but for us, it 2-2.5% of total sales. So, there is no comparison between the two models", he told Mint.
Biyani had earlier hit out at online retailers for under-cutting the market and selling goods at below the cost price.
“The euphoria should last for 6-18 months. Then it will be over. You can't live in the euphoria and reality will set in," he had said in 2014.
In fact, after the government last month issued guidelines on overseas investment in online marketplaces, he welcomed the decision and said that the move will prevent e-commerce firms from controlling prices and selling below cost.
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