The All India Consumer Products Distributors Federation (AICPDF) has filed an antitrust complaint against Zomato’s Blinkit, Swiggy Instamart, and Zepto. The filing, reviewed by Reuters, accuses these platforms of engaging in predatory pricing and deep discounting, making it impossible for traditional retailers to compete.
AICPDF represents 400,000 distributors who supply consumer goods from companies like Nestlé, Unilever, and Tata to 13 million retail shops across India. They argue that small retailers cannot match the pricing strategies of quick commerce players, leading to unfair competition.
The Rise of Quick Commerce and Its Impact
Quick commerce, which delivers groceries and essentials within 10 minutes from neighborhood warehouses, has gained immense popularity. According to Bernstein, India’s quick commerce market is projected to grow from $200 million in 2021 to $35 billion by 2030. However, this rapid expansion has disrupted traditional retail models.
A Datum Intelligence survey found that:
- 36% of quick commerce users have reduced their visits to supermarkets
- 46% have cut back on purchases from small independent stores
This shift threatens small retailers who rely on traditional supply chains, making it difficult for them to compete with the aggressive pricing of quick commerce firms.
Allegations of Deep Discounting
AICPDF’s complaint highlights price differences between traditional retailers and quick commerce platforms. For instance, a Nescafé coffee jar that small retailers purchase at Rs 622 ($7.14) is available for:
- Rs 514 on Zepto
- Rs 577 on Swiggy Instamart
- Rs 625 on Blinkit
These price gaps suggest that quick commerce platforms are engaging in deep discounting, making it difficult for brick-and-mortar retailers to sustain their businesses.
Potential Consequences for Zomato, Swiggy, and Zepto
If the Competition Commission of India (CCI) finds merit in the complaint, it could launch an investigation, requiring companies to disclose their pricing strategies. The case could take months, and if violations are found, the companies may face penalties or regulatory restrictions.
The case adds to ongoing scrutiny of Zomato and Swiggy, who were already investigated last year for violating competition laws in their food delivery businesses. Meanwhile, Zepto, which is preparing for an IPO at a $5 billion valuation, could face significant regulatory roadblocks.
What’s Next?
The CCI will now assess the complaint and decide whether to initiate a formal investigation. If the case moves forward, it could reshape pricing policies in India’s booming quick commerce industry, ensuring fair competition for small retailers.
