Reliance Jio-Facebook Deal Might Extend To Lifestyle And Medicine Sectors: Report

Reliance Jio has recently announced that Facebook is buying its 9.99 percent stake in its platform. The US-based social media giant has invested Rs. 43, 574 crore in the Jio platform. Now, it has been reported that the partnership is expected to go further. This means that there are chances that the partnership will not be limited to JioMart.

It is expected that Jio might use other platforms, including Instagram to increase the reach of its retail brands, such as Reliance Trends, Reliance Digital, and Reliance Brands. "It could turn out to be an enterprise-level play for Reliance in the long term and could benefit both partners," a CEO of global apparel brand was quoted.

Adding to that, "Millennials, for instance, are on Instagram, and brands under Reliance Brands could leverage that platform. In contrast, Reliance Trends, which is into more affordable products, can use the Facebook platform to reach out to more consumers."

Similarly, analysts close to the development believe that the partnership will be extended into many areas such as fashion, lifestyle, medicines, and food delivery, as it seems that Facebook wants to capture the entire e-commerce market via Reliance Jio's subscriber base.

"Partnership with the largest retail player in India, where partnership starts with grocery, and later could be extended to medicine distribution, fashion and lifestyle stores, food delivery, etc," Credit Suisse said in a report. The report also states that there is no official announcement by Reliance Jio and Facebook.

This deal will allow Facebook to reach small and medium businesses on its platform via Jio's Kirana venture. Meanwhile, JP Morgan issued a separate report which says that initially, WhatsApp will integrate Jio Mart on its application program interface, which will allow users to see the catalogue and buy products. The firm also said that the deal will help Jio to expand its reach in e-commerce space.

On the other hand, JioMart is reportedly has started its operations in some areas of Mumbai including Thane and Kalyan. The service is likely to expand in other parts of the country. There is no doubt that this deal will help both Jio and Facebook to capture the market. But, this deal has become a nightmare for other sectors, including telecom, digital payments, and e-commerce portals, as it will give Jio and Facebook an upper hand against these platforms.