- Facebook, the social media giant earlier today announced today to invest around $5.7 Billion in Mukesh Ambani’s Reliance ‘JIO’ and becomes a stakeholder in reliance industries.
- Facebook and Reliance Jio, also announced collaborating to produce a super app like WeChat.
- The tech giants are planning to utilize the Whatsapp platform to implement their project through its enormous user base, which the platform has collected throughout its lifetime.
The most famous players of the market, Facebook and Reliance Jio, are collaborating to produce a super app which proposed to include in it multipurpose features similar to that of the Chinese platform WeChat. According to a recent ET report, the tech giants are planning to utilize the Whatsapp platform to implement their project through its enormous user base, which the platform has collected throughout its lifetime.
Though the project is paused temporarily as an impact of the COVID-19 crisis, it shall soon resume its developmental process when the atmosphere settles. The motive is to provide an all-purpose platform through which the user base can perform all their activities through the online services offered by the corporations mentioned above.
Individuals using the platform can use it to chat, shop clothes, apparels or groceries and also execute digital payments simultaneously through various plug-ins provided by the platform which includes ajio.com, Reliance Retail Stores, and Jio Money respectively. The idea is based on the social media platform WeChat whereby the users can chat, make digital payments, play games and also book flight tickets and Hotels through the same channel.
Looking at the big picture, the platform will eventually benefit the Reliance group in two ways. Apart from the platform’s potential to lead to a direct B2C contact for the company’s businesses, the platform will also be able to aid the company to understand and analyze the spending trends of the user base as a whole.
Under the paths of Blockchain technology
Libra could have a groundbreaking success in India if they succeeded in this tie-up. With Facebook’s crypto-currency branch Libra, the project will have the potential to produce a much efficient and secured output when compared to other platforms. Telecom in crypto is basic infra needs, and libra’s tie-up with telecom giant is a significant move. Similar to this another telecom based crypto project is very near to start its operation in West Africa. Ethereum based venture ‘Cajutel’ could be Jio of Africa, but it is not something supported with Fancy names like Facebook or reliance but managed by one of the earliest Swiss ISP providers.
The blockchain technology utilized in the asset will provide maximum security features and other add-ons, which will enable the platform to increase its productivity. With such an advancement, the multipurpose platform will become a real competition in the consumer market as such platforms create a convenient and user-friendly atmosphere to its consumers.
As of now
The project is in its due diligence phase as claimed by the recent report. In addition to that, the report also states that Morgan Stanley financially backs the plan as the investment banker. Based on the concept of division of work, the project is being compartmentalized based on the skills specialized by project members. Apart from that, it is also ensured that the progress rate and developments of one department is not disclosed to the other. The outcome of the project will have a significant impact for both the companies depending upon their financial and technical contributions into the project.
However, other aspects of the project remain unknown. The claim is made under the lines of control and ownership based on their contributions. The two companies may incorporate a new one to manage the affairs of the platform.
It is also reportedly stated that both companies had hired professional lawyers to seal of any legal loopholes in the project that might impact the platform eventually. As a precedent to the project, it was reported in a recent article that Facebook was planning to buy a 10% stake in Reliance Jio by investing billions of Dollars.