On March 31, 2022, Reliance Retail stopped giving cashbacks under the JioMart Maha Cashback offer to consumers making purchases from Reliance Industries Limited (RIL) owned companies. These cashbacks could be used for making purchases and getting discounts across Reliance owned retail stores, both online and offline.
Reliance Jio, a telecom brand under RIL, also allowed users to utilise this cashback to get a discount on the recharges made through the MyJio app. This meant that even after tariff hikes, a lot of users were getting the new expensive plans at discounted rates. While not every customer might have leveraged the offer to get a discount on their prepaid recharge, there might be many who might be doing that, which would have offset the effect of the tariff hike.
However, users stopped receiving fresh cashbacks under the JioMart Maha Cashback offer from March 31, 2022. Further, any and all the cashback amount that Reliance customers had expired on April 30, 2022. This means that from now on, all the future recharges will cost users the complete amount of money as they can’t get any discount going forward.
Jio’s ARPU Gains Decent Despite Delay
It is worth noting that Jio is not too far from Airtel when it comes to the average revenue per user (ARPU) figure. Despite the JioMart Maha Cashback offer and having a lot of users subscribed to the long-term plans, Jio’s ARPU gains have been decent until Q3 FY22.
The exact ARPU figure for the last quarter of FY22 isn’t out yet, but we might see a significant difference in both Jio and Airtel’s ARPU figure this time as the full impact of the tariff hike would benefit Airtel more.
Jio’s ARPU gains will be more evident in the coming quarters as there are a lot of long-term subscribers who haven’t recharged with the new tariffs yet. The results of all the telcos should be out soon.
Reliance Industries Limited’s (RIL) board is all set to meet on May 6, 2022, to consider and approve the financial results for the quarter and year-ending March 31, 2022. The results should not take long post that to be revealed by the company.