Retailers vs Zomato, Swiggy, Zepto: Retail Group Seeks Probe Into Quick Commerce Platforms
Retail distributors in India have urged the CCI to investigate Zomato, Swiggy, and Zepto for alleged predatory pricing. The quick commerce platforms are accused of offering deep discounts, harming traditional retailers' ability to compete.
India's largest group of retail distributors, the All India Consumer Products Distributors Federation (AICPDF), has called on the Competition Commission of India (CCI) to investigate quick commerce platforms such as Zomato, Swiggy, and Zepto. The group, which represents 4 lakh retail distributors working with major companies like Nestlé and Hindustan Unilever, has raised concerns over alleged predatory pricing practices by these platforms.
In a letter to the CCI dated October 18, 2024, AICPDF claims that the quick commerce services—Blinkit (Zomato’s platform), Instamart (Swiggy’s service), and Zepto—are luring customers by offering deep discounts and selling products below cost. According to the federation, this pricing strategy makes it extremely difficult for traditional retailers and distributors to compete.
Additionally, the letter points out that many consumer goods companies are now bypassing traditional retail distributors in favor of quick commerce platforms, further harming the salespeople who have been serving local shops for decades. The group has asked the CCI to step in and protect the interests of small retailers and distributors.
This request for action comes on the heels of an earlier investigation by the CCI, which found that larger e-commerce players like Amazon and Flipkart also engaged in predatory pricing, although these companies denied any wrongdoing.
Quick commerce is booming in India, with platforms like Blinkit, Instamart, and Zepto offering deliveries of groceries, electronics, and more in as little as 10 minutes. According to Datum Intelligence, annual sales on quick commerce platforms are expected to exceed $6 billion in 2024. Blinkit holds around 40% of the market share, while Instamart and Zepto each command about 30%.
The growing competition between traditional retail distributors and quick commerce platforms is reshaping how Indians shop, and the outcome of this investigation could significantly impact the retail landscape in the country.
What's Your Reaction?
