An association of FMCG distributors has lodged a petition with the Competition Commission of India (CCI), alleging that quick commerce platforms like Blinkit (owned by Zomato), Swiggy, and Zepto engage in anti-competitive practices.
According to a report released on Friday, the All India Consumer Products Distributors Federation has accused these platforms of using predatory pricing strategies, including heavy discounts.
CCI Yet to Accept the Petition
Sources indicate that the CCI has not yet accepted the petition. The competition regulator is expected to decide within the next four weeks whether to initiate an investigation or dismiss the case.
Impact on Stock Market
This development has also impacted Zomato and Swiggy’s stock prices. On Friday, Zomato’s shares dropped by over 3%, trading at ₹218.78, while Swiggy’s stock declined by 0.5%, trading at ₹360.90.
Distributors Also Approached Ministries
This marks the first instance where a distributors’ association has formally approached the CCI against quick commerce platforms.
Previously, the industry body had raised similar concerns with the Ministry of Commerce and the Ministry of Finance.
Quick Commerce’s Rapid Growth
According to GlobalData, a leading data and analytics firm, quick commerce is expanding rapidly in India, with urban consumers increasingly relying on fast delivery services for daily essentials.
As demand for instant deliveries rises, the number of quick commerce platforms has surged, fueling their rapid growth in the country.
Shravani Mali, a consumer analyst at GlobalData, stated, “The COVID-19 pandemic significantly accelerated the adoption of quick commerce, as consumers preferred safer and more convenient shopping methods.
These platforms cater to this demand by offering rapid deliveries, enabling customers to easily purchase groceries, household essentials, and ready-to-eat meals.”
