More trouble to Zepto, Deepinder Goyal’s Zomato? petition against Blinkit, Swiggy Instamart filed by…, over…

Blinkit, Instamart, and Zepto collectively reported over $1 billion in revenue for FY24, showcasing the scale of their operations.

The All India Consumer Products Distributors Federation (AICPDF) has filed a petition with the Competition Commission of India (CCI), accusing quick commerce giants Blinkit, Zepto, and Swiggy Instamart of engaging in unfair pricing practices and monopolizing the market, according to a Business Standard report.

The petition, submitted by AICPDF President Dhairyashil Patil, alleges that these companies are disrupting market competition by offering deep discounts and entering into exclusive supply and distribution agreements.

Impact On Traditional Retailers

The AICPDF claims that such practices negatively affect over 10 million offline mom-and-pop stores across India, posing a significant threat to traditional retail businesses. The petition states, “Quick commerce and hyperlocal delivery have gained immense popularity in recent years, offering products within minutes. However, their pricing strategies are detrimental to fair market competition.”

Demands For Regulatory Oversight

In its continued efforts to address these concerns, the AICPDF had previously written to Union Commerce Minister Piyush Goyal, urging the government to closely monitor the rapid expansion of quick commerce platforms and implement regulations to safeguard small traders. The matter was subsequently referred to the CCI by the Department for Promotion of Industry and Internal Trade (DPIIT).

 Blinkit, Zepto, Swiggy Instamart Rapid Expansion 

The complaint comes when Blinkit, Zepto, and Swiggy Instamart aggressively expand their operations, offering a range of services, including groceries, home essentials, and even 10-minute delivery options, which are challenging the existance of traditional retail stores.

E-commerce giants like Amazon and Flipkart have also begun investing in this segment, adding to the competitive pressure. However, questions have been raised about the sustainability and ethics of the 10-minute delivery model.

Last month, reports indicated that the National Restaurant Association of India (NRAI) is considering a similar move against Zomato and Swiggy over their 10-minute food delivery apps, Bistro and Snacc, seeking intervention from the CCI.