The All India Consumer Products Distributors Federation ( AICPDF ) has filed a complaint with India's antitrust authority, Competition Commission of India ( CCI ), alleging that quick commerce companies Zomato's Blinkit , Swiggy , and Zepto are engaging in predatory pricing practices.
All India Consumer Products Distributors Federation represents 400,000 retail distributors, including Nestle and Hindustan Unilever. In the letter dated October 18, AICPDF complained to the antitrust body that quick commerce companies were practising predatory pricing - or offering deep discounts and selling below cost to lure customers.
What the complaint letter says
The complaint claims that these companies are offering deep discounts and selling products below cost to attract customers, making it difficult for traditional retailers to compete. This, in turn, is harming the livelihoods of countless small businesses.
The quick commerce sector, which has seen rapid growth in India, offers delivery of various products within 10 minutes or less. While this has reshaped consumer behaviour, it has also raised concerns about its impact on traditional retail.
The AICPDF's complaint highlights how quick commerce companies are bypassing traditional distributors and forming direct relationships with consumer goods companies. This practice, they argue, is unfair and threatens the survival of small retailers.
The Competition Commission of India (CCI) is now investigating the matter. If the CCI finds merit in the complaint, it could take action against the accused companies.
This development comes at a time when the quick commerce sector is experiencing significant growth. Zomato's shares have doubled this year, and Swiggy is preparing for a major IPO. However, the allegations of predatory pricing could cast a shadow over the industry's future.
All India Consumer Products Distributors Federation represents 400,000 retail distributors, including Nestle and Hindustan Unilever. In the letter dated October 18, AICPDF complained to the antitrust body that quick commerce companies were practising predatory pricing - or offering deep discounts and selling below cost to lure customers.
What the complaint letter says
The complaint claims that these companies are offering deep discounts and selling products below cost to attract customers, making it difficult for traditional retailers to compete. This, in turn, is harming the livelihoods of countless small businesses.
The quick commerce sector, which has seen rapid growth in India, offers delivery of various products within 10 minutes or less. While this has reshaped consumer behaviour, it has also raised concerns about its impact on traditional retail.
The AICPDF's complaint highlights how quick commerce companies are bypassing traditional distributors and forming direct relationships with consumer goods companies. This practice, they argue, is unfair and threatens the survival of small retailers.
The Competition Commission of India (CCI) is now investigating the matter. If the CCI finds merit in the complaint, it could take action against the accused companies.
This development comes at a time when the quick commerce sector is experiencing significant growth. Zomato's shares have doubled this year, and Swiggy is preparing for a major IPO. However, the allegations of predatory pricing could cast a shadow over the industry's future.
You may also like
Olivia Nuzzi leaves New York Magazine over secret relationship with Kennedy Jr
We don't believe in 'taken-for-granted' relations, says PM Modi amid Canada chill
Railways offers three sub-cadre options to recruits selected under earlier unified IRMS
Jose Mourinho 'eating same meal every evening at £1k-a-night Istanbul hotel'
Depsang & Demchok pullback just 1st step towards normalcy
