Retail Distributors Call for Antitrust Probe into Blinkit, Swiggy, Zepto Over Unfair Pricing

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Key Takeaways

  • Distributors want an investigation into Blinkit, Swiggy, and Zepto.
  • They’re accusing these companies of using predatory pricing to squeeze out traditional retailers.
  • Quick commerce sales in India could top $6 billion this year.
  • Zomato’s Blinkit has snagged almost 40% of the market.
  • The Competition Commission of India (CCI) is the body that can dig into these claims.

Looma News

The All India Consumer Products Distributors Federation (AICPDF) is raising a red flag about some major players in quick commerce, namely Blinkit, Swiggy, and Zepto. They’ve sent a letter to the antitrust authority, asking for an investigation into these companies for what they call predatory pricing. Basically, they’re saying these guys are slashing prices to attract customers, making it super hard for traditional retailers to keep up.

Quick commerce is totally taking off in India, with promises of delivering everything from groceries to gadgets in just ten minutes. It’s changing the way people shop and putting pressure on big names like Amazon. But the AICPDF, which represents around 400,000 retail distributors, feels like they’re being pushed aside. They argue that many consumer goods companies are skipping them altogether and going straight to these quick commerce platforms.

The AICPDF’s letter is calling on the Competition Commission of India (CCI) to step in and protect these traditional distributors and small retailers. With the quick commerce market expected to hit over $6 billion this year, it’s a situation to watch. Notably, Zomato’s Blinkit has a hefty 40% market share, while Swiggy and Zepto each hold around 30%.

It’ll be fascinating to see how the CCI handles these allegations, especially since they’ve already looked into companies like Amazon and Flipkart for similar issues. With Zomato’s stock price climbing and Swiggy prepping for a big IPO, the stakes are getting higher.

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