NEW DELHI (Reuters) -India’s largest retail distributor group has requested an investigation into the India quick commerce antitrust regarding three quick commerce companies. The companies in question are Zomato’s Blinkit, Swiggy, and Zepto. These firms are accused of predatory pricing, according to a letter received on Sunday. #IndiaQuickCommerceAntitrust
Quick commerce has emerged as a significant trend in India, promising rapid deliveries of products, from groceries to electronics, within 10 minutes. This new model is reshaping shopping habits and challenging established e-commerce giants like Amazon.
In a letter dated October 18, the All India Consumer Products Distributors Federation (AICPDF) alerted the antitrust body about quick commerce companies. The AICPDF represents 400,000 retail distributors for major firms like Nestle and Hindustan Unilever. It claims these companies offer steep discounts and sell products below cost to attract customers.
Zomato’s Blinkit, Zepto, and Swiggy’s Instamart, backed by SoftBank, did not respond to inquiries from Reuters. The letter highlighted that several consumer goods companies work directly with quick commerce firms to broaden their reach.
Such practices make “it impossible for traditional retailers to compete or survive,” said the letter, which is not public but was seen by Reuters.
“Implement protective measures for traditional distributors and small retailers to safeguard their interests,” it urged the Competition Commission of India (CCI).
The CCI did not respond to a Reuters inquiry, and the AICPDF declined to comment on its letter regarding the investigation.
Annual sales on Indian quick commerce platforms will surpass $6 billion this year. Research firm Datum Intelligence reports that Blinkit commands nearly a 40% market share. Meanwhile, Swiggy and Zepto each hold around 30%.
A government official informed Reuters that the CCI can start an investigation if it finds merit in the complaints. The official requested anonymity because they cannot speak publicly.
In August, the CCI’s investigation unit found that larger e-commerce companies violated local laws through predatory pricing. This included Amazon and Walmart’s Flipkart. However, both companies deny these allegations. #IndiaQuickCommerceAntitrust
Addressing Competitive Imbalances in India’s Quick Commerce Market
Moreover, these quick commerce companies are rapidly gaining market share, reshaping consumer expectations. As they promise speedy deliveries, many consumers are opting for these services over traditional retail. Therefore, the call for an India quick commerce antitrust probe highlights the urgency of addressing these competitive imbalances.
