India’s largest group of retail distributors has requested the antitrust authority to look into three quick delivery companies—Zomato’s Blinkit, Swiggy, and Zepto—accusing them of unfair pricing practices.

This information comes from a letter dated October 18, which claims that these companies are using “predatory pricing” by offering big discounts and selling products at a loss to attract customers.

Quick commerce is a growing trend in India, with businesses promising to deliver items like groceries and electronics in just 10 minutes. This has changed how people shop and is putting pressure on larger e-commerce companies like Amazon.

The All India Consumer Products Distributors Federation (AICPDF), which represents about 400,000 distributors for major brands like Nestle and Hindustan Unilever, argues that these quick delivery companies are bypassing traditional distributors. This makes it hard for local retailers to compete and survive in the market.

The letter urges the Competition Commission of India (CCI) to implement protective measures to support traditional distributors and small retailers.

Zomato, Swiggy, and Zepto have not yet responded to requests for comments on the situation.

This highlights the ongoing tension between traditional retailers and the rise of quick commerce in India, as reported by Reuters.

Credit : Reuters

https://www.reuters.com/business/retail-consumer/indian-retail-group-seeks-antitrust-probe-quick-commerce-companies-swiggy-2024-10-20

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