Retailers vs Zomato, Swiggy, Zepto? Retail group seeks probe against quick commerce platforms

India’s largest group of retail distributors, All India Consumer Products Distributors Federation (AICPDF) that represents 4 lakh retail distributors of major companies such as Nestle and Hindustan Unilever, has asked antitrust body Competition Commission of India (CCI) to investigate quick commerce companies, Zomato, Swiggy and Zepto, for alleged predatory pricing. 

According to a letter by the group to CCI, dated October 18, the quick commerce platforms are offering deep discounts and selling below cost to lure customers. Zomato’s Blinkit, Swiggy’s Instamart, and Zepto have been named by the federation. 

They said that several consumer goods companies are now directly dealing with quick commerce firms to increase their reach, and bypassing the traditional salespeople who have been delivering orders from one shop to another for decades.

Such predatory pricing and discounts make it “impossible for traditional retailers to compete or survive”, said the group in the letter, which has not been made public but seen by news agency Reuters. 

"Implement protective measures for traditional distributors and small retailers to safeguard their interests," it urged the CCI.

CCI’s investigating unit had found earlier in August that bigger e-commerce players, including Amazon and Flipkart breached local laws through predatory pricing. The companies had denied the allegations. 

Quick commerce is witnessing a boom in India with players like Blinkit, Instamart and Zepto, promising to deliver anything from groceries to electronics within 10 minutes, reshaping how Indians shop online. Annual sales on Indian quick commerce platforms are expected to exceed $6 billion this year. Blinkit has a hefty market share of 40 per cent, with Instamart and Zepto commanding around 30 per cent each, as per research firm Datum Intelligence.

(With Reuters inputs)