The synergy between Facebook and Reliance Jio will help realize Digital India’s mission which mainly focuses on these two goals i.e. ease of living for all common Indians and ease of doing businesses to all small entrepreneurs. Facebook Inc’s investment of $5.7 billion (Rs 43,574 crore) for 9.99 percent equity stake in India’s biggest telecom company, Reliance Jio, is a significant step for both the companies and their vision and ambitions for the Indian market.
The deal was initiated by Mr. Aakash Ambani and Mr. Manoj Modi (Reliance veteran) were in the forefront of negotiations that resulted in the $5.6 billion investment in Reliance Jio by Facebook. As quoted by Aakash Ambani “The origins of this transaction lie in the fact that Mukesh Ambani has always viewed Jio as a digital platform and not just a mobile network.” Initially when Ambani launched Jio it came out with the fundamental of taking over the market to establish a network over the country focusing majorly on lower and middle classes. Likewise this deal has the similar digital wave focusing on the similar target groups.
Both the companies through this partnership intend to roll out a commerce platform, Jiomart and Whatsapp which will mainly empower nearly 3 crore kirana shops to digitally transact with every customer. India in the near future will be a technologically driven country aiming at enabling new opportunities for the more than 60 million small businesses across India. So, the deal will strengthen Facebook’s commitment to accelerate the growth of small and medium businesses and entrepreneurship in India. Some of the key features of JioMart are free home delivery, no minimum order value, express delivery, no questions asked return policy and more. JioMart promises to stock over 50,000 grocery platform for the consumers to buy every necessary daily essential product.
Threat to other platforms – There are several e-commerce platforms available in the country from BigBasket to Grofers to Amazon and relatively the launch of Jiomart in collaboration with Whatsapp at the same time could pose threat to these platforms given the popularity and reasonability of both the platforms.
This deal has financially helped the Indian economy in this time of crisis. The Reliance Jio investment post deal has increased to $ 72 billion which is a benefit in upraising the finance sector. It will relieve in accelerating India’s digital economy and will make new workplaces for people and employment opportunities to operate more effectively.
The way I understand this it is a non exclusive deal where Facebook and Whatsapp and Instagram will work with other as that’s the nature of the business. The real dominance in India will come from Whatsapp because Whatsapp is the engine that is going to be used by the smaller enterprises as Instagram and Facebook works on Business to Consumer (B-C) basis, the real strategy will come from Whatsapp as half the billion people of India are using it as their first option of connectivity as they sleep and wake up on Whatsapp. In a nut shell the world will pivot India as the new growth epicenter.