India’s largest group of retail distributors is urging the antitrust authority to investigate three popular quick commerce companies—Zomato’s Blinkit, Swiggy, and Zepto. They are concerned about these companies’ alleged predatory pricing practices, which they say threaten traditional retailers.
Quick commerce is taking India by storm, with businesses promising delivery of everything from groceries to electronics in just 10 minutes. This model is reshaping shopping habits and challenging major players like Amazon.
In a letter dated October 18, the All India Consumer Products Distributors Federation, representing around 400,000 retail distributors for brands like Nestle and Hindustan Unilever, highlighted the issue. They accuse quick commerce firms of using deep discounts and selling products below cost to attract customers, making it hard for traditional retailers to compete.
The letter, which hasn’t been made public, stated that many consumer goods companies are opting to work directly with quick commerce firms, leaving traditional salespeople behind. This shift could threaten the livelihoods of countless small retailers.
The federation is calling on the Competition Commission of India (CCI) to implement protective measures for traditional distributors and small shops. So far, Zomato, Swiggy, and Zepto have not responded to requests for comment.
Quick commerce is booming, with annual sales expected to surpass $6 billion this year. Blinkit holds nearly 40% of the market share, while Swiggy and Zepto each account for about 30%. The CCI has the authority to launch an investigation if they find sufficient grounds based on the complaints.
Interestingly, a recent investigation by the CCI found that major e-commerce players like Amazon and Flipkart had violated local laws with similar predatory pricing tactics, although those companies deny the allegations.
Reflecting the rapid growth of the quick commerce sector, Zomato’s stock has doubled this year, and Swiggy is preparing to launch an IPO worth over $1 billion in the coming weeks.
