Globally acclaimed conglomerate Reliance Industries has made it to the headlines for having announced that it is in advanced talks with regards to purchasing a major stake in Grab a Grub Services. As per sources familiar with the matter, the company’s decision to plausibly acquire a stake in the Mumbai-based hyperlocal logistics firm may have come on the heels of Reliance announcing its plans earlier, about penetrating the ecommerce domain.
Called as Grab, this startup seemingly provides last-mile, 3rd party logistics services for online pharmacy & grocery delivery, food delivery companies, and more. A reliable source familiar with the current developments was quoted to state that Grab has been in discussions with potential suitors since the last 6-7 months. Reportedly, the startup had also been in talks Paytm regarding an acquisition.
As per credible reports, in the event that the discussions bear fruit and an acquisition actually takes place, it is bound to help Reliance accelerate its entry into ecommerce push. Reliance head honcho Ambani had already been quoted stating that the company plans to undertake an O2O (online-to-offline) approach in order to build this business, and leverage the customer pool of Jio as well as retail businesses apart from kirana stores.
Apparently, Ambani also seems to have said that the rollout of this business will commence from Gujarat. He was quoted affirming that the new e-commerce platform is likely to empower and enrich the state’s 12 lakh small retailers and shopkeepers.
If the move goes through, analysts speculate that it would place Reliance in a competitive position opposite industry conglomerates Amazon and Flipkart, who seemingly hold between 70% to 80% of the market presently.
Reliable reports state that the size of the buyout has not been ascertained so far, however, a deal is likely to materialize within the next few weeks. A new investment may also be on the cards, in a bid to upscale the venture further.