Local Retailers Take a Stand Against Quick Commerce Platforms

In a bold move, local Kirana stores and FMCG distributors have approached the Competition Commission of India (CCI) to investigate the alleged anti-competitive practices of quick-commerce platforms such as Swiggy Instamart, Zepto, and Blinkit. The All India Consumer Products Distributors Federation (AICPDF), representing small retail businesses, submitted a petition on February 28, accusing these platforms of deep discounting and predatory pricing, which they claim is pushing small retailers out of business.

The Allegations Against Quick Commerce

The AICPDF's petition highlights the financial disparity between the deep-pocketed quick-commerce platforms and the traditional small retailers. According to the federation, these platforms are engaging in deliberate losses through predatory pricing to dominate the market. This strategy, they argue, makes it impossible for small retailers to compete, leading to significant business losses and eventual closure of many stores.

The Rapid Expansion of Quick Commerce

Quick commerce platforms, initially focused on grocery delivery, have rapidly expanded their offerings to include a wide range of non-grocery items such as small appliances, mobile phones, electronics, jewellery, and apparel. This expansion, coupled with aggressive marketing and discounting strategies, has attracted a large customer base, with a significant portion of consumers shifting their purchases from traditional Kirana stores to these platforms.

Looking Ahead

The AICPDF's petition to the CCI marks a critical juncture in the battle between traditional retail and quick commerce. As these platforms continue to grow, the outcome of this investigation could have far-reaching implications for the retail sector in India. The federation's efforts to protect the interests of small retailers and distributors underscore the challenges faced by traditional businesses in adapting to the rapidly changing retail landscape.