The Blinkit and Zomato logos can be seen in this illustration taken on June 27, 2022.
Givenruvich | Reuters
India’s largest retail distributor group has asked the antitrust agency to investigate three fast business companies – Zomato’s A letter on Sunday revealed that Blinkit, Swiggy and Zepto were involved in predatory pricing.
Express commerce has sparked a new shopping craze in India, with companies promising to deliver anything from groceries to electronics within 10 minutes, reshaping the way Indians shop and posing a challenge to e-commerce giants. Amazon.
The All India Consumer Goods Distributors Federation said in a letter on October 18 that it represents 400,000 retail distributors of major companies, including nestle and Hindustan UnileverTell antitrust authorities that Fast Commerce is engaging in predatory pricing, or offering deep discounts and below-cost sales to attract customers.
Zomato-owned Blinkit, Zepto and Swiggy, which operates the Instamart delivery service and is backed by SoftBank, did not respond to Reuters queries.
Some consumer products companies are dealing directly with fast commerce companies to expand their reach, sidelining traditional salespeople who have delivered orders from store to store for decades, the letter said.
The letter said the practice “makes it impossible for traditional retailers to compete or survive.”
It urged the Competition Commission of India to “implement protective measures for traditional distributors and small retailers to safeguard their interests”.
CCI also did not respond to Reuters’ queries and AICPDF declined to comment on its letter.
Research firm Datum Intelligence said annual sales of fast commerce platforms in India are expected to exceed $6 billion this year, with Blinkit accounting for nearly 40% of the market, while Swiggy and Zepto each account for about 30%.
A government official told Reuters on Sunday that the CCI has the power to initiate an investigation on its own if it believes a complaint has merit.
The CCI’s investigative arm in August identified larger e-commerce companies: Amazon and Walmart’s Flipkart violated local laws through predatory pricing, a charge it denies.
Zomato’s share price has doubled this year, while Swiggy is set to launch an IPO of over $1 billion in the coming weeks, reflecting the strength of the fast commerce sector.
About The Author
