India’s largest group of retail distributors has requested an investigation from the antitrust authority into three quick commerce companies—Zomato’s Blinkit, Swiggy, and Zepto—over allegations of predatory pricing. In a letter dated October 18, the All India Consumer Products Distributors Federation (AICPDF), representing 400,000 retail distributors for major brands like Nestle and Hindustan Unilever, claims that these quick commerce firms are engaging in practices such as offering deep discounts and selling products below cost to attract customers.
Quick commerce has emerged as a popular trend in India, offering rapid delivery of products ranging from groceries to electronics within 10 minutes, thereby transforming consumer shopping habits and posing competition to established e-commerce giants like Amazon. The AICPDF’s letter highlights that many consumer goods companies are opting to partner directly with quick commerce platforms, effectively sidelining traditional distributors who have long been the primary link between manufacturers and retailers.
The letter argues that such practices create an uneven playing field, making it difficult for traditional retailers to compete or survive in the market. It urges the Competition Commission of India (CCI) to implement protective measures to safeguard the interests of traditional distributors and small retailers.
Annual sales on Indian quick commerce platforms are projected to exceed $6 billion (approximately Rs. 50,443 crore) this year, with Blinkit holding nearly a 40 percent market share, while Swiggy and Zepto account for around 30 percent each, according to research from Datum Intelligence.
The CCI has the authority to initiate an investigation based on the merits of the complaints it receives. A government official noted that the CCI’s investigation unit previously found larger e-commerce companies, such as Amazon and Flipkart, to have violated local laws through predatory pricing, a claim both companies have denied.
The rapid growth of the quick commerce sector is evident, with Zomato’s shares doubling this year and Swiggy preparing to launch its over $1 billion (approximately Rs. 8,407 crore) initial public offering (IPO) in the coming weeks.
