Small retailers vs quick commerce: Zomato, Swiggy, Zepto in trouble for deep discounting? Face antitrust case for 'predatory pricing'

India's quick-commerce giants—Zomato’s Blinkit, Swiggy Instamart, and Zepto—are facing an antitrust complaint over alleged deep discounting, Reuters reported. The All India Consumer Products Distributors Federation (AICPDF), representing 400,000 distributors supplying to 13 million retail stores, has asked the Competition Commission of India (CCI) to investigate their pricing strategies.

AICPDF claims these platforms’ "predatory pricing" makes it difficult for local kirana stores to survive. Their filing, reviewed by Reuters, highlights significant price differences: a Nescafe coffee jar that small retailers buy at ₹622 is sold at ₹514 on Zepto, ₹577 on Swiggy Instamart, and ₹625 on Blinkit.

The CCI will now decide whether to investigate. If the case moves forward, the companies could be asked to justify their pricing policies. 

The filing could worsen Zomato and Swiggy's headaches. A separate CCI investigation last year found their food delivery businesses breached competition laws. The case is ongoing.

India’s quick-commerce market, which promises deliveries within minutes, is booming. Competition is heating up as Reliance’s JioMart, Amazon, and Flipkart expand into quick commerce.

Bernstein estimates the sector will reach $35 billion by 2030, up from $200 million in 2021. However, this growth is affecting traditional retailers. A Datum Intelligence survey found that 36% of Indian shoppers have reduced supermarket visits, while 46% buy less from small stores due to the convenience of quick commerce.

Blinkit leads the market with a 40% share and over 1,000 small warehouses, followed by Zepto (29% market share, 900 stores) and Swiggy Instamart (26%).

Zepto, valued at $5 billion, is preparing for an IPO, but increasing regulatory scrutiny could impact future growth.