My Greetings to everyone !! I trust you all are doing well.
Today in this article I will cover details about the Facebook Reliance Jio deal which will change the dynamics of this digital era. Let us have a look at some facts and figures about the deal.
Jio-Facebook deal is one of the most successful Silicon Valley enterprises investing in India’s large, rapidly growing, and attractive digital market.
It is a decision based on the opportunity available to Facebook in what will eventually be its largest and most lucrative ecosystem.
Firstly such a big announcement of Facebook & Jio deal in such a pandemic situation is a win-win for both the business giants.
This is the largest investment by a technology company anywhere in the world and the largest FDI in the technology sector in India.
Here in India, Jio is having a very huge consumer base of around 388 million and ARPU (average revenue per user) is just Rs. 120.
Jio is not generating any revenue other than this, so here the plan is to collaborate all the micro, small & medium business using a single digital platform and amplify their reach as well as profitability.
So that all the unorganized business will get an equal opportunity to compete in the market and would be able to scale the business at a higher level. The distinctly Indian ‘Kirana’ led retail model will be infinitely strengthened both in terms of business viability and their employment generation capacity
Here the main focus is on the grocery market (Kirana stores) to bring them on a single platform so that it will be easy even for the customers also to get the items at affordable rates by comparing with the different stores. So Easier to live & easier to do business.
This deal will help to reduce the Reliance’s debt burden.
Facebook has invested Rs. 43,574 crore because small businesses are the core of every economy and they need our support.
India has the largest communities on Facebook and WhatsApp.
Digital dynamics will change as the country is in the middle of the digital transformation. Companies like Jio have played a major role in bringing the internet to the millions of people and small businesses
India has more than 60 million for micro & SMB businesses and millions of people rely on them for jobs. In India, Facebook is having around 400m users.
Facebook is generating around 80% to 90% of its revenue by advertisements, It does not have a transactional based revenue model, so collaborating with Jio which is having a high consumer base and using Whatsapp pay as its transaction mode will be beneficial for both the players.
Jio transactions are likely to be done exclusively via Whatsapp Pay.
Here’s how the partnership works in an ongoing trial run in Navi Mumbai, Thane, and Kalyan: Jio customers who are Whatsapp users (Jio network already knows them) get a message:
“Welcome to JioMart – WhatsApp Order booking Service. We are currently accepting orders only for selected localities in Navi Mumbai, Thane, and Kalyan. Orders placed by 5 pm every day are likely to be available for pick up at your nearest JioMart Kirana within 48 hours.”
Once the basic details like name and address are filled then customers are directed to JioMart with 50,000 SKUs. Followed by the further process of pickup and delivering the order.
This is a great initiative by Jio and Facebook. Share your opinions about the deal. What do you think this deal will bring to our economy.
Sources : Moneycontrol
Article Credits: We are grateful to Mr. Satish Tripathi for adding some value and presenting his opinions.
