By Aditya Kalra
NEW DELHI (Reuters) – India’s largest retail group has asked the antitrust regulator to probe three fast-commerce companies – Blinkit, Swiggy and Zomato’s Zepto – for alleged predatory pricing, according to a letter published on Sunday.
Fast commerce is a new fad in India, with companies promising deliveries of everything from groceries to electronics in 10 minutes, reshaping the way Indians shop and challenging e-commerce giants such as ‘Amazon.
In a letter dated October 18, the All India Consumer Products Distributors Federation (AICPDF), which represents 400,000 retail distributors of major companies including Nestle and Hindustan Unilever, told the antitrust body that fast-trading companies were practicing predatory pricing – or offered deep discounts and sold below cost to attract customers.
Zomato’s Blinkit, Zepto and Swiggy, which runs delivery service Instamart and is backed by SoftBank, did not respond to Reuters’ queries.
The letter says several consumer goods companies are dealing directly with fast-moving companies to increase their reach, sidelining traditional sellers who for decades went from store to store to deliver goods. orders.
Such practices make it “impossible for traditional retailers to compete or survive,” said the letter, which is not public but was seen by Reuters.
“Implement safeguards for traditional distributors and small retailers to safeguard their interests,” it urged the Competition Commission of India (CCI).
The CCI also did not respond to a query from Reuters and the AICPDF declined to comment on its letter.
Annual sales on Indian fast commerce platforms are expected to exceed $6 billion this year, with Blinkit holding nearly 40% market share, while Swiggy and Zepto around 30% each, research firm Datum Intelligence said .
The ICC has the power to open an investigation itself if it considers the complaints to be well-founded, a government official told Reuters on Sunday, speaking on condition of anonymity because he was not authorized to speak publicly.
In August, the CCI’s investigative unit found that larger e-commerce players, Amazon and Walmart’s Flipkart, had violated local laws by engaging in predatory pricing, allegations the companies deny.
Reflecting the strength of the fast commerce sector, Zomato shares have doubled this year and Swiggy will launch its $1 billion-plus IPO in the coming weeks.
(Reporting by Aditya Kalra; Editing by Barbara Lewis)
