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Flipkart tests online grocery service Supermart with soft launch in Bangalore

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In what can be seen as a step up in its game against Amazon, homegrown online retailer  on Monday rolled out its online grocery service, , on its mobile application to a selected set of customers in Bengaluru.

Flipkart tests grocery delivery service Supermart with soft launch in Bangalore
As per industry reports, the online F&G delivery market is estimated to be around US 0 million in India and pegged to touch US billion by 2020

Interestingly, the first set of customers are Flipkart’s employees only who are required to order for a minimum of Rs 500. For orders over Rs 1000, Flipkart is offering free delivery, as per a report in The Economic Times.

This will be the second attempt into the grocery segment for the Bengaluru-based firm. In October 2015, Flipkart had launched a separate groceries ordering app called Nearby for delivering fruits, vegetables, soaps and other staples from supermarkets to customers. However, following a weak response, Flipkart closed the business a few months later.

Flipkart’s rival has launched its grocery ordering app, last year. The app is now available in four Indian cities including Bengaluru, Delhi-NCR and Mumbai. Amazon plans to invest around US $500 million in e-retail of food products in India.

As per reports, Flipkart is building a dedicated supply chain for its grocery service Supermart.

To further lure consumers, the company is experimenting with options such as ‘open-box delivery’ to verify products before acceptance and ‘doorstep returns’ if the customer faces any issue with the product.

The online food and grocery segment also includes players like  and , who are also looking at expanding their operations.

As per industry reports, the online F&G delivery market is estimated to be around US $600 million in India and pegged to touch US $5 billion by 2020.