Flipkart to now sell grocery

Flipkart is poised to begin selling groceries from the second half of this year, sources said, entering a line of business which is crowded but also regarded as an attractive one for online retailers.

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The service, most likely to be launched as an in-house offering rather than through an acquisition, will put the Bengaluru firm in direct competition with specialist portals such as Big-Basket, ZopNow and Local Baniya as grocery retail emerges as the latest front in the battle for leadership in India's fast-growing online retail industry.

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"We already have the technology, warehousing and the brand, so most likely we will do this in-house in the second half of this year," a person with knowledge of the firm's plan told ET. Flipkart declined comment for this report.

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When it launches a grocery retail service, Flipkart will be following in the wake of rivals Amazon and Snapdeal, which have a head start in the segment. Last week, Amazon India said it is launching an express delivery platform in partnership with mom-and-pop stores, calling it Kirana Now. The company is currently running a pilot programme in Bengaluru.

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However, some packaged foods and beverages have been available on the Amazon India portal since October 2014. Snapdeal tied up with gourmet food retailer Godrej Nature's Basket in January to sell about 400 of its products online, with orders delivered the next day. The Delhibased company does not, as yet, offer on-demand grocery.

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