New Delhi: In a move that highlights the growing regulatory challenges facing India’s e-commerce and quick commerce sectors, Zomato, Swiggy, and Zepto are now at the center of an antitrust case. The All India Consumer Products Distributors Federation (AICPDF) has filed a complaint with the Competition Commission of India (CCI), alleging deep discounting practices by these companies. This development comes as the sector faces increasing competition and regulatory scrutiny, with implications for both online platforms and traditional retailers.
The AICPDF’s antitrust case targets Zomato’s Blinkit, Swiggy’s Instamart, and Zepto, accusing them of predatory pricing that undermines fair competition. The case underscores significant price disparities between online platforms and local kirana stores, which struggle to match the discounts offered by these quick commerce giants. For instance, a Nescafe coffee jar priced at around Rs 622 for small retailers is sold for Rs 514 on Zepto, Rs 577 on Swiggy Instamart, and Rs 625 on Blinkit.
India’s quick commerce sector is projected to grow exponentially, reaching $35 billion by 2030 from just $200 million in 2021. Currently, Blinkit leads the market with a 40% share, followed by Zepto with 29%, and Swiggy Instamart with 26%. This rapid growth has come at a cost, with a recent survey revealing that 36% of shoppers have reduced their visits to supermarkets, and 46% have cut back on purchases from small independent stores due to the convenience and discounts offered by quick commerce platforms.
Zepto, valued at $5 billion last year, is preparing for an initial public offering (IPO), further emphasizing the sector’s potential and challenges. The CCI will review the case and may initiate a formal investigation if it finds merit in the allegations. This could lead to a detailed examination of the business practices of these companies, potentially requiring them to justify their pricing strategies.
