Retail Distributors accuse Blinkit, Swiggy, Zepto of Predatory Pricing

Retail distributors have raised serious accusations against quick commerce platforms like Blinkit, Swiggy, and Zepto, accusing them of engaging in predatory pricing. Predatory pricing is a practice where one sets prices so low that it undermines traditional retail players, forcing them out of competition.

In a letter dated Oct. 18, to the country's antitrust authority, the All-India Consumer Products Distributors Federation (AICPDF) alleged that these companies are offering deep discounts and selling below cost to gain market share and drive traditional retailers out of business. "Implement protective measures for traditional distributors and small retailers to safeguard their interests," it urged the Competition Commission of India (CCI).

All India Consumer Products Distributors Federation (AICPDF), represents 400,000 retail distributors of major companies including Nestle and Hindustan Unilever. Quick commerce is a new shopping rage in India, with companies promising deliveries of anything from groceries to electronics within 10 minutes, reshaping how Indians shop and challenging e-commerce giants such as Amazon.

The Competition Commission of India (CCI), the country's antitrust regulator, has not yet responded to the allegations. However, the CCI has the power to initiate its own investigation if it finds merit in the complaints.

The quick commerce market in India is expected to reach $6 billion this year, with Blinkit, Swiggy, and Zepto being the major players. While Blinkit, Swiggy, and Zepto have not publicly addressed the accusations in detail, they often position their pricing strategies as a means of providing greater affordability and convenience to consumers.

If these accusations lead to legal or regulatory actions, it could prompt government oversight of pricing practices in the e-commerce and quick commerce sectors. This could also set a precedent for more stringent rules regarding competition in India’s rapidly growing digital retail market.

In essence, retail distributors are concerned that the aggressive pricing strategies of these platforms could disrupt the traditional retail ecosystem, leaving smaller players struggling to survive in an increasingly digital-first marketplace.