Can Facebook become Amazon of the world with Reliance Jio?

Must Read

Dog Park – A Park For Dogs inaugurated in Hyderabad

Dog lovers have a reason to rejoice with the first park for canines being inaugurated in the city of...

Saina Nehwal Biopic Soon – Shraddha Kapoor as Saina Nehwal

It's official now, Amole Gupte's upcoming Saina Nehwal biopic, starring Shraddha Kapoor, goes on floors. According to a press...

CLIT India Expo 2018 will make India Debut This November

CILT India Expo 2018 is all set to become India's premier logistics and transport industry event due to numerous...
Knowledge Stall Desk
At Knowledge Stall, we are going to quench the thirst of knowledge. We are going to try our level best in providing you the latest trending news about lifestyle, technology and other informative sectors

Can Facebook become Amazon of the world with Reliance Jio?

New Delhi, April 23 (IANS) Mark Zuckerberg-run Facebook has interestingly chosen India to begin its global ecommerce journey with investing $5.7 billion (approx. Rs 43,574 crore) in Reliance Jio, sounding the bugle to take on ecommerce behemoth Amazon and Walmart in the long run.

- Advertisement -

Facebook has long been striving to enter the big club of the ecommerce world and now, India which has a huge growth potential in the segment can become a fertile ground for its dream to go global and launch similar investment plans in other countries as well, according to leading industry experts.

According to a recent report by Deloitte India and Retail Association of India (RAI), the fast growing e-commerce market in the country will touch $84 billion in 2021 from $24 billion in 2017.

According to the India Brand Equity Foundation (IBEF), propelled by rising smartphone penetration, the launch of 4G networks and increasing consumer wealth, the Indian e-commerce market is expected to grow to $200 billion by 2026.

“Facebook has taken the inspiration from China”s WeChat which is a super app whose services include online money transfers and shopping. The latest investment in Reliance Jio is definitely a move to go global and launch itself into the ecommerce arena in a big way,” Satish Meena, Senior Forecast Analyst with Forrester, told IANS.

Facebook has placed a right bet on Reliance Jio as it has a massive retail infrastructure and pan-India presence and the timing is perfect as grocery business is booming worldwide – be it online or your neighbourhood kirana store – in these social distancing times.

“It makes a lot of sense for both the companies. Reliance is aggressively planning to enter the ecommerce sector with JioMart. Facebook which has no men on ground offers a solid tech foundation and AI/ML-rich platform for Reliance Jio to achieve that,” elaborated Meena.

Reliance Retail”s entry into the online retail sector is the biggest challenge for Amazon and Walmart-Flipkart as the Mukesh Ambani-led behemoth is well-positioned to create massive disruption in the market.

Reliance Retail operates 10,415 stores in more than 6,600 cities and towns, with 500 million annual footfalls – giving the company the kind of scale required to swiftly launch India-based operations.

According to brokerage firm Anand Rathi Financial Services, Jio is gradually transforming from a telecom enterprise into an IT/Tech company with multiple emerging technologies, including Artificial Intelligence (AI), Internet of Things (IoT), Blockchain, Virtual Reality and Cloud Computing.

Facebook has an expertise in all these areas and the collaboration can open myriad new ways for the Indian telecom giant to leverage it and become a tech behemoth in the country in new-age technologies and passing those on to its over 388 million Jio subscribers.

For Menlo Park, California-based Facebook which is largely a B2C company with a current $512 billion market cap, the B2B India experiment can open the door for a bigger opportunity globally, taking on the ecommerce leaders. The social networking giant has got deep pockets too.

Facebook has been trying to figure out e-commerce for the last decade like with its seller-focused Marketplace, but its prior retail initiatives have mostly failed to take off.

The Reliance Jio experiment can change Zuckerberg”s fortune forever.


Please enter your comment!
Please enter your name here

Latest News

We succeeded in saving country from stage 3: Health Minister

New Delhi, April 25 (IANS) Union Health Minister Harsh Vardhan on Friday said we have saved India from going...

Dietary supplements important weapon for fighting off COVID-19

New York, April 25 (IANS) Supplements containing vitamins C and D and other micronutrients are a safe, effective and low-cost means of helping your...

Instagram launches in-app food delivery to support businesses

San Francisco, April 25 (IANS) Facebook-owned photo and video-sharing app Instagram has launched a new feature that allows food orders to be placed through...

India has so far gifted $5 million medical supplies to world to combat Covid-19

New Delhi, April 24 (IANS) India has gifted USD 5 million worth of medicines and other Covid-19 related supplies to the world so far...

India needs to incentivise charger manufacturing: Top industry body

New Delhi, April 24 (IANS) Smartphone chargers and Printed Circuit Board Assembly (PCBA) are two mobile components that could help India achieve its manufacturing...

No exponential rise in Covid-19 cases in country: Health Ministry

New Delhi, April 23 (IANS) The Centre said on Thursday that the rise in coronavirus cases in the country has been more or less...

Google will now verify all of its advertisers on its platforms

San Francisco, April 23 (IANS) To provide greater transparency and equip users with more information about who is advertising to them, Google on Thursday...

HP to provide free resources to students, educators in India

New Delhi, April 23 (IANS) PC and printer major HP Inc. on Wednesday announced its partnership with educational content provider Gamooz in India to...

Can Facebook become Amazon of the world with Reliance Jio?

New Delhi, April 23 (IANS) Mark Zuckerberg-run Facebook has interestingly chosen India to begin its global ecommerce journey with investing $5.7 billion (approx. Rs...

More Articles Like This