Online grocery retail services are a new trend in Indian urban cities. The two large players namely Grofersand Big Basket attracting customers. The study is an attempt to understand the changing scenario in grocery retail sector. The prime objective of the study is to explore the factors that are attracting customers to choose e retail for Groceries. The data was collected through questionnaire from 100 respondents. Factor analysis (Principle Component Analysis method) was used to explore the influencing factors. These results have shown that mainly customer service, convenience, loyalty rewards, product vailability and payment options are attracting the customers to choose Grophers and Big Basket. These companies have a huge untapped markets and will easily convert the habits of customers in Urban areas.