Retail Distributors Demand Investigation into Quick Commerce Giants Over Alleged Predatory Pricing Practices in India

major group of retail distributors in India is calling for an investigation into three quick commerce firms—Zomato's Blinkit, Swiggy, and Zepto—alleging they are engaging in harmful pricing strategies. The request was made to the antitrust authority in a letter that surfaced on Sunday.

Quick commerce has become a popular trend in India, with businesses offering rapid delivery services for items ranging from groceries to electronics in as little as 10 minutes. This innovation is shifting consumer habits and posing competition to established e-commerce players like Amazon.

In a communication dated October 18, the All India Consumer Products Distributors Federation (AICPDF), representing around 400,000 retail distributors linked with major brands including Nestle and Hindustan Unilever, expressed concerns that these quick commerce companies are using aggressive pricing tactics. They are reportedly providing significant discounts and pricing below cost to attract consumers.

Responses from Zomato's Blinkit, Zepto, and Swiggy, which operates the Instamart service and is supported by SoftBank, have not been received concerning these allegations.

The letter indicated that various consumer goods brands are now working directly with quick commerce companies to broaden their reach, effectively bypassing traditional representatives who have traditionally made deliveries to local shops.

According to the letter, these strategies create an environment where traditional retailers struggle to compete or survive. The letter called upon the Competition Commission of India (CCI) to implement protective measures to ensure the interests of traditional distributors and small retailers are maintained.

In response to inquiries regarding the letter, the CCI has not provided any comments, and the AICPDF also chose not to elaborate further.

Research indicates that annual revenue from Indian quick commerce platforms is expected to surpass $6 billion (approximately Rs. 50,443 crore) this year, with Blinkit holding close to a 40 percent market share, and both Swiggy and Zepto capturing around 30 percent each, according to Datum Intelligence.

The CCI has the authority to launch an investigation if it finds valid grounds based on received complaints, as noted by a government official speaking on condition of anonymity.

Earlier in August, the CCI's investigation team determined that larger e-commerce entities such as Amazon and Walmart's Flipkart had violated local regulations through predatory pricing, though these companies have denied such allegations.

Highlighting the quick commerce industry's growth, shares of Zomato have doubled in value this year, while Swiggy is preparing to launch an initial public offering worth over $1 billion (around Rs. 8,407 crore) in the near future.