Quick Commerce Platforms Face Allegations of Anti-Competitive Practices

The All India Consumer Products Distributors Federation (AICPDF) has officially petitioned the Competition Commission of India (CCI) against quick commerce platforms like Swiggy Instamart, Zepto, and Zomato’s Blinkit. The federation accuses these platforms of employing deep discounting and predatory pricing strategies, which are allegedly pushing small retailers out of business.

The Impact on Small Retailers and Traditional Distributors

According to AICPDF, the aggressive pricing strategies of these platforms are making it impossible for small retailers and traditional distributors to compete. The federation claims that these platforms are deliberately incurring losses through predatory pricing to expand their market share, thereby causing significant business losses for smaller players.

Quick Commerce: A Rapidly Growing Sector

Quick commerce platforms, which started with groceries, have rapidly expanded their offerings to include a wide range of products, from electronics to apparel. This expansion, coupled with the convenience of 10-minute delivery, has led to a significant shift in consumer purchasing behavior, with a substantial portion of traditional kirana store purchases moving to these platforms.

Legal and Market Challenges Ahead

The AICPDF's petition is part of a broader struggle against the dominance of quick commerce platforms, which are seen as a threat to the survival of millions of retail shops and distributors. The National Restaurant Association of India (NRAI) is also pursuing legal action against similar practices in the food delivery sector, highlighting the growing concerns over the impact of rapid delivery services on traditional businesses.