Daijiworld Media Network- New Delhi

New Delhi, Mar 7: Leading quick-commerce platforms Zomato, Swiggy, and Zepto are facing an antitrust case over alleged deep discounting practices, with Indian consumer product distributors demanding an investigation. The case, filed with the Competition Commission of India (CCI) by the All India Consumer Products Distributors Federation (AICPDF), accuses these platforms of engaging in predatory pricing that harms traditional retailers.

The rapid growth of quick commerce, where consumer products are delivered within minutes from neighborhood warehouses, has reshaped shopping habits. However, small retailers have raised concerns that aggressive discounting is driving customers away from their stores. Bernstein estimates that India's quick commerce market, which was valued at $200 million in 2021, will soar to $35 billion by 2030.

The complaint highlights that Zomato’s Blinkit, Swiggy’s Instamart, and Zepto are unfairly pricing products, making it difficult for traditional retailers to compete. “An alarming trend of predatory pricing and deep discounting practices by Q-commerce platforms has resulted in unfair pricing models,” states the AICPDF filing.

This is not the first time Zomato and Swiggy have come under scrutiny. Last year, the CCI launched a separate investigation into their food delivery businesses, alleging violations of competition laws. That case is still ongoing.

Meanwhile, Zepto is preparing for a stock market debut (IPO) after securing funding at a valuation of $5 billion in 2023.

The CCI will now review the case and decide whether to order a full-fledged investigation, a process that could take several months. If the claims are substantiated, companies may be asked to justify their pricing strategies. However, if the watchdog finds no merit in the case, it may dismiss the complaint.

AICPDF, which represents 4,00,000 distributors supplying brands like Nestle, Unilever, and Tata to 13 million retail shops across India, claims that quick-commerce discounts have significantly affected shopping trends. A recent survey found that 36% of consumers had reduced supermarket visits, while 46% cut back purchases from small independent stores due to the rise of quick-commerce platforms.