Retail distributors call for probe into Blinkit, Swiggy, Zepto over alleged predatory pricing
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India's largest group of retail distributors has requested an investigation into quick commerce platforms Blinkit, Swiggy, and Zepto for alleged predatory pricing practices.
The All India Consumer Products Distributors Federation (AICPDF), representing 400,000 distributors, has written to the Competition Commission of India (CCI), urging action against these firms for offering deep discounts and selling goods below cost, a strategy seen as an attempt to dominate the market.
Quick commerce has surged in popularity across India, offering delivery of groceries, electronics, and more within minutes. The rise of these platforms has significantly impacted traditional e-commerce players like Amazon, while also sidelining long-standing retail distribution networks.
In the letter, dated October 18, the AICPDF accused the quick commerce companies of engaging in practices that make it "impossible for traditional retailers to compete or survive." The group asked the CCI to implement measures that protect the interests of small retailers and distributors.
The letter also criticized major consumer goods companies for partnering directly with quick commerce firms, bypassing traditional sales methods in favor of these new delivery models.
According to research from Datum Intelligence, annual sales from India’s quick commerce sector are expected to surpass $6 billion this year, with Blinkit holding a 40% market share, followed by Swiggy and Zepto at around 30% each.
The CCI, which has the authority to initiate investigations if it finds merit in complaints, has yet to respond to the AICPDF’s claims. This case follows a similar investigation in August, where the CCI found that e-commerce giants Amazon and Flipkart had violated local laws through predatory pricing, though the companies denied the allegations.
As quick commerce continues to gain momentum, Zomato's shares have doubled in value this year, and Swiggy is preparing for its highly anticipated $1 billion IPO in the coming weeks.