AICPDF Files Complaint Against Quick Commerce Firms for Predatory Pricing
On October 20, India’s largest retail distributor group, the All India Consumer Products Distributors Federation (AICPDF), requested the Competition Commission of India (CCI) to investigate three quick commerce companies—Zomato’s Blinkit, Swiggy, and Zepto—for alleged predatory pricing practices.
Quick commerce, which promises rapid deliveries of groceries and other goods within minutes, has disrupted traditional retail systems and posed a challenge to e-commerce giants like Amazon. The AICPDF, which represents 400,000 retail distributors for major companies such as Nestle and Hindustan Unilever, argued that the deep discounts and below-cost pricing strategies adopted by these firms make it impossible for smaller distributors to compete.
The complaint highlights that consumer goods companies are increasingly partnering with quick commerce platforms, bypassing conventional distributors who previously handled order deliveries to local shops. The letter urged the CCI to introduce measures to protect traditional distributors and small retailers from being pushed out of the market.
While Zomato, Swiggy, and Zepto have not responded to Reuters’ requests for comment, Swiggy is preparing to launch a $1 billion IPO in the coming weeks. The quick commerce sector in India is growing rapidly, with sales expected to surpass $6 billion in 2024. Blinkit currently leads the market with a 40% share, while Swiggy and Zepto each control around 30%.
The CCI, which recently found Amazon and Flipkart in violation of local laws through similar pricing practices, has the authority to initiate an investigation if it deems the complaint valid. If the probe proceeds, it could significantly impact the operations of quick commerce companies and their relationship with traditional retailers. The rapid rise of this sector and the shift in consumer behavior have prompted urgent calls for regulatory oversight to ensure fair competition.