As online shopping became the way of life for many people, it was only a matter of time that we got the most basic necessity of our life i.e. groceries, delivered right at our doorstep. In just a couple of years since the addition of this category in online shopping, today there are half a dozen online stores bringing us vegetables, fruits, cereals, packed foods, dairy products, meat and all other kitchen essentials at our fingertips.
In October 2015, Flipkart launched its own grocery delivery arm, ‘Nearby’, only to shut it down in February the following year. The company claimed that Flipkart Nearby was piloted in select areas of Bengaluru as a test for understanding efficiencies and operations of the hyper local business. On the other hand, Amazon their largest competitor has ventured into the online grocery space with a full-fledged grocery service ‘Amazon Now’ and is expected to invest more in the sector.
1. How two giants have a different view of the same market?
2. Analyse the impact of 5Cs in this sector - the customers, company, competition, collaborators and context.
3. Who would you go with Flipkart for shutting Nearby or Amazon Now for investing further in the sector? Do you find this market lucrative or not? Support your answers with reasons.