Investigation Request on Quick Commerce Companies

By Aditya Kalra
NEW DELHI (Reuters)
India's largest retail distributors group has called for an antitrust investigation into three quick commerce firms: Zomato's Blinkit, Swiggy, and Zepto, citing alleged predatory pricing in a letter dated October 18.

Quick commerce, rapidly gaining popularity in India, delivers groceries and electronics within 10 minutes, challenging major e-commerce players like Amazon (NASDAQ:AMZN). The All India Consumer Products Distributors Federation (AICPDF), representing 400,000 retail distributors from companies like Nestle and Hindustan Unilever (LON:ULVR), claims these firms are selling below cost to attract customers.

Zomato's Blinkit, Zepto, and Swiggy's Instamart, backed by SoftBank (TYO:9984), did not respond to requests for comments from Reuters. The letter highlights that many consumer goods companies are working directly with quick commerce firms, bypassing traditional distributors who have historically managed deliveries.

This shift, the letter argues, makes it nearly impossible for conventional retailers to compete, urging the Competition Commission of India (CCI) to implement protective measures for these traditional businesses.

Annual sales in India's quick commerce sector are expected to surpass $6 billion this year, with Blinkit holding around a 40% market share, while Swiggy and Zepto account for approximately 30% each, according to research firm Datum Intelligence.

The CCI can initiate investigations if they find valid complaints. A previous investigation by the CCI in August found Amazon and Walmart's Flipkart violated antitrust laws through predatory pricing, claims both companies refute.

Reflecting the sector's growth, Zomato's shares have doubled this year, and Swiggy plans to launch a more than $1 billion IPO in the coming weeks.