Kiranas and FMCG distributors have approached Competition Commission about how Quick Commerce platforms like Zepto, Swiggy & Blinkit are using anti-competitive practices to accelerate trade.
All India Consumer Products Distributors (AICPDF) which represents small retail businesses, alleged that quick commerce platforms use unfair pricing strategies like deliberate losses by setting unrealistically low prices to expand in market. In some cases, these quick commerce platforms give introductory offers in addition to discounts. And this practices come under predatory pricing.
Kirana stores accounted for 92.2% of estimates $617 billion in grocery market in India in 2024. Before the emergence of quick commerce in India, Kirana Stores served as the bedrock of India’s Retail Market. Kirana stores continue to play a vital role in the Indian retail ecosystem, connecting brands with consumers at the grassroots level. Kirana stores are integral to daily life in Tier 2 and Tier 3 cities in India due to their convenience, credit system and personalized service. However, with the changing infrastructure and technology, Quick Commerce sets to penetrate in Tier 2 and Tier 3 too.
“2025 will see amplification of Quick commerce as new categories (beyond Grocery) & new cities (Tier2 ) drive stronger growth. We estimate 75 per cent per cent YoY growth in QC driving share gains” said a report by Bernstein.
Quick Commerce platform In india include Zepto, Blinkit by Zomato and Swiggy Instamart. A survey by market research firm Datum Intelligence late last year covering 3,000 respondents across 10 cities had shown that about 82 per cent of buyers have moved at least 25 per cent of kirana purhcases to quick commerce. Speed and Convenience, Broader Selection, Ease of Access, Promotions and Discounts, Better Stock Availability are the core reason why the public is purchasing more from quick commerce platforms. These reasons led the Quick Commerce Trio to generate $3,349 million in revenue In 2024.
AICPDF has proposed a mandatory 10 per cent price floor on FMCG products and 2-3 % price floor on Non- FMCG items sold via quick commerce platforms. it has also urged the CCI to introduce regulatory measures to curb excessive discounts and promotional offeres. Last year in October, AICPDF said that around 2,00,000 kirana stores have been shut down in the past year due to the rise of quick commerce in India.
Zepto and Swiggy Instamart declined to comment on the matter while Zomato did not respond.
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