India’s largest group of retail distributors, the All India Consumer Products Distributors Federation (AICPDF), has urged the Competition Commission of India (CCI) to investigate three prominent quick commerce companies—Zomato’s Blinkit, Swiggy, and Zepto—for alleged predatory pricing practices. According to a report by Reuters citing a letter dated October 18, the AICPDF claims these companies are offering deep discounts and selling products below cost to attract customers, undermining traditional retail operations.
Quick commerce has emerged as a significant trend in India, with companies promising delivery of goods ranging from groceries to electronics within a mere 10 minutes. This rapid service model is reshaping consumer shopping habits and posing challenges to established e-commerce giants like Amazon, the report added.
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The letter, according to Reuters, highlights concerns that several consumer goods companies are opting to partner directly with quick commerce firms, thereby bypassing traditional distributors who have historically facilitated the delivery of products from manufacturers to retailers. “Such practices make it impossible for traditional retailers to compete or survive,” the letter states. It calls on the CCI to implement protective measures for traditional distributors and small retailers to safeguard their interests.
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Despite requests for comment, representatives from Blinkit, Swiggy, and Zepto did not respond to inquiries from Reuters. Moneycontrol was also unable to independently verify the claims outlined in the letter. The CCI has yet to respond to the AICPDF’s appeal, the report added.
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The CCI possesses the authority to initiate an investigation if it finds merit in the complaints. Recently, the CCI’s investigation unit found that larger e-commerce players, including Amazon and Flipkart, violated local laws through similar predatory pricing tactics, allegations both companies have denied.
As the quick commerce sector gains momentum, Zomato’s shares have reportedly doubled this year, and Swiggy is preparing to launch an initial public offering (IPO) valued at over $1 billion in the coming weeks.
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