India’s quick commerce sector has changed how many people shop, offering the convenience of groceries and essentials delivered in just minutes. But this rapid growth has brought concerns from traditional players. Recently, the All India Consumer Products Distributors Federation (AICPDF), which represents 4,00,000 retail distributors, raised a red flag against quick commerce giants Blinkit, Swiggy, and Zepto.
In a letter dated October 18, AICPDF urged the Competition Commission of India (CCI) to investigate these companies for alleged predatory pricing. The term refers to practices where businesses offer products at deep discounts, often below cost, to attract more customers. According to AICPDF, this approach not only attracts consumers but also disrupts the long-standing distribution channels that traditional retailers rely on.
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Such practices make “it impossible for traditional retailers to compete or survive,” stated the letter, as seen by Reuters. AICPDF’s letter emphasised the need for protective measures, urging CCI to safeguard the interests of traditional distributors and small retailers.
The federation highlighted how many consumer goods companies are directly collaborating with quick commerce firms, bypassing the traditional salespeople who have, for decades, supplied goods to local stores across India.
The quick commerce market in India has seen impressive growth, with annual sales expected to cross $6 billion this year. Blinkit leads with nearly 40% of the market share, while Swiggy and Zepto account for about 30% each, according to research firm Datum Intelligence. This trend has even reflected in the stock market, with Zomato, Blinkit’s parent company, seeing its shares double this year.
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In August, the CCI’s investigation unit found that e-commerce giants like Amazon and Flipkart were engaging in predatory pricing, though these companies denied the allegations. A government official mentioned that the CCI could start an investigation into quick commerce if it finds sufficient merit in AICPDF’s complaint.
The outcome of this complaint could reshape how quick commerce companies operate in India.