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Flipkart Pilot delivering fresh fruits and vegetables in Hyderabad

Experts say gaining space to sell groceries and fresh foods are the next big battle between Flipkart, Amazon, and Reliance, and being out of the internet is a key strategy to boost adoption. "The supermarket is one of the major categories in Flipkart ... The pilot project that contains fresh food in Hyderabad aims to improve understanding of consumer behavior and the supply chain that we are developing to meet the demand for this category," the company said.

In October, Flipkart registered an entity, Flipkart FarmerMart, with an authorized capital of Rs. 1,845 crore, in line with the government's Foreign Direct Investment (FDI) policy that allows 100% of foreign direct investment in retail food sales produced and manufactured in the country. The foreign direct investment license for retail food sales is granted by the Ministry of Industry Promotion and Internal Trade (DPIIT).

Amazon has already committed to investing $ 500 million over five years to sell its food and third-party products, obtained and packaged locally, through online and offline stores through its subsidiary Amazon Retail India. It also has a stake in MORE, the Aditya Birla Group food and grocery retail chain, and Future Retail, led by Kishore Bayani, who manages the Easy Day and Big Bazaar series.

Reliance Industries launched the Geomart portal online with the first pilots in Mumbai. However, Alibaba-backed BigBasket is still the largest online player in this space, but the online leader has not proven offline.

In India, Walmart doesn't sell directly to consumers, as it is a structured wholesaler, or cash operator, that sells goods to local stores, hotels, and catering companies in local crowns. Food is the only sector in which electronic retailers can sell directly to consumers.

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