Indian retailers have raised concerns about Zepto, Blinkit and Swiggy, accusing them of predatory pricing.
India’s fast commerce industry has ushered in a new way of shopping, offering fast delivery of food and essential items, often within minutes. However, this convenience has worried traditional retailers. Recently, the All India Consumer Products Distributors Federation (AICPDF), which represents over 400,000 retail distributors, has expressed strong objections against big players like flashes, drinkand Zepto. In a letter to the Competition Commission of India on October 18, the federation called for an investigation into the three companies for allegedly adopting predatory pricing, which threatens traditional retailers.
Predatory pricing generally involves selling a product at deep discounts, in many cases below its cost of production, to attract consumers. AICPDF urged that, among other things, this type of price reduction strategy did not act as the best example for competition as it tends to affect local stores and also break the old distribution system that many small businesses depend on. retailers. This will make it “impossible for traditional retailers to compete or survive,” the federation states in its letter. They call for protective measures to ensure that the interests of small retailers and distributors are safeguarded.
Additionally, AICPDF noted that many consumer goods companies are now working directly with these fast-commerce platforms, which sidelined traditional distributors that had served local stores for decades. This change is significant as fast commerce in India is expected to exceed $6 billion in annual sales during the current year. Market research claims that Blinkit holds almost 40% of the market, with Swiggy and Zepto claiming around 30% each.
Earlier this year, CCI’s research arm found that e-commerce giants like Amazon and Flipkart had violated similar predatory pricing strategies, an allegation they strongly deny. Well-informed government sources have told the media that if AICPDF’s complaint proves correct, CCI may launch an investigation against the fast trading sector. Pending the AICPDF complaint, everything related to the express trade sector in India could change radically.
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