India's largest association of retail distributors has requested the antitrust authority to probe three quick commerce firms - Zomato's Blinkit, Swiggy, and Zepto - over accusations of predatory pricing, according to a letter revealed on Sunday. Quick commerce is a burgeoning trend in India, with companies offering deliveries of a wide range of products, from groceries to electronics, within 10 minutes, transforming Indian shopping habits and posing a challenge to e-commerce giants like Amazon.
In a letter dated October 18, the All India Consumer Products Distributors Federation (AICPDF), representing 400,000 retail distributors of major companies like Nestle and Hindustan Unilever, informed the antitrust body that quick commerce firms were engaging in predatory pricing by offering substantial discounts and selling products below cost to attract customers.
Zomato's Blinkit, Zepto, and Swiggy, which operates the Instamart delivery service with backing from SoftBank, did not reply to inquiries. The letter stated that numerous consumer goods companies were directly engaging with quick commerce firms to expand their reach, bypassing the traditional salespeople who have historically visited shops to deliver orders. These practices render it 'impossible for traditional retailers to compete or survive,' according to the letter, which is not public but was reviewed by Reuters.The Competition Commission of India (CCI) was urged to implement protective measures for traditional distributors and small retailers to safeguard their interests. The CCI did not respond to a query from Reuters, and AICPDF declined to comment on its letter. 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% market share, and Swiggy and Zepto each around 30%. A government official, speaking on condition of anonymity, told Reuters on Sunday that the CCI has the authority to initiate an investigation if it finds merit in complaints.
In August, the CCI's investigative team discovered that major e-commerce companies, Amazon and Walmart's Flipkart, violated local regulations through predatory pricing, accusations that both companies refute.