Indian Retail Distributors Writes To CCI Urging A Probe Into Quick Commerce Companies Swiggy, Blinkit & Zepto
In a letter dated October 18, the AICPDF accused these quick commerce companies of luring customers with deep discounts and selling goods below cost, a practice known as predatory pricing.
India's quick commerce sector, which promises delivery of items like groceries and electronics within 10 minutes, is rapidly transforming the way people shop, posing a significant challenge to established e-commerce giants like Amazon. In response, the All India Consumer Products Distributors Federation (AICPDF), representing 400,000 distributors of major companies like Nestle and Hindustan Unilever, has called on the country’s antitrust authority to investigate three prominent players in this space—Zomato’s Blinkit, Swiggy, and Zepto—over claims of predatory pricing.
In a letter dated October 18, the AICPDF accused these quick commerce companies of luring customers with deep discounts and selling goods below cost, a practice known as predatory pricing. The group urged the antitrust body to take action, citing concerns over the impact these strategies could have on traditional retail distributors.
The letter stated that many consumer goods companies were now working directly with quick commerce firms to expand their reach, bypassing the traditional salespeople who have long relied on visiting individual shops to fulfill orders.
These practices, the letter noted, make it “impossible for traditional retailers to compete or survive.” Although the letter is not publicly available, Reuters had access to its contents.
AICPDF urged the Competition Commission of India to “implement protective measures for traditional distributors and small retailers to safeguard their interests.”
Quick Commerce Platforms Are At Risk?
According to research firm Datum Intelligence, annual sales on Indian quick commerce platforms are expected to surpass $6 billion this year, with Blinkit holding nearly 40 per cent of the market, while Swiggy and Zepto share around 30 per cent each.
A government official, speaking anonymously to Reuters on Sunday, mentioned that the Competition Commission of India (CCI) has the authority to launch an investigation if complaints are found credible. In August, the CCI's investigation unit determined that larger e-commerce players, including Amazon and Walmart's Flipkart, had violated local laws through predatory pricing, allegations both companies deny.
Reflecting the rapid growth of the quick commerce industry, Zomato's stock has doubled this year, and Swiggy is set to launch its IPO, valued at over $1 billion, in the coming weeks.
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