Annual sales of Indian rapid trading platforms expected to exceed $6 billion this year (representative)
India’s largest retail group has asked the antitrust body to investigate three e-commerce companies – Blinkit, Swiggy and Zomato’s Zepto – for alleged predatory pricing, it said in a letter on Sunday.
Rush is a new shopping trend in India, with companies promising delivery of everything from groceries to electronics within 10 minutes, changing the way Indians shop and challenging e-commerce giants like Amazon.
In a letter dated October 18, the All India Consumer Products Distributors Federation (AICPDF), which represents 400,000 retail distributors of major companies including Nestle and Hindustan Unilever, told the antitrust body that fast-track firms practice predatory pricing — or offer deep discounts and sales below cost to attract customers.
Zomato’s Blinkit, Zepto and Swiggy, which operates delivery service Instamart and is backed by SoftBank, did not respond to Reuters queries.
The letter said several consumer goods companies are working directly with e-commerce firms to increase their reach, sidelining traditional merchants who for decades walked from one store to another to deliver orders.
Such practices make it “impossible for traditional retailers to compete or survive,” said the letter, which was not made public but was seen by Reuters.
“Implement safeguards for traditional distributors and small retailers to protect their interests,” the Competition Commission of India (CCI) urged.
The CCI also did not respond to a query from Reuters, and the AICPDF declined to comment on its letter.
Annual sales of India’s fast-trading platforms are expected to exceed $6 billion this year, with Blinkit having nearly 40 percent market share, while Swiggy and Zepto around 30 percent each, research firm Datum Intelligence said.
The CCI has the power to launch its own investigation if it finds merit in the complaints, a government official told Reuters on Sunday, speaking on condition of anonymity because he was not authorized to speak publicly.
The CCI’s investigative arm in August found that larger e-commerce players, Amazon and Walmart’s Flipkart, violated local laws through predatory pricing, allegations the companies deny.
Reflecting the strength of the e-commerce sector, Zomato’s shares have doubled this year and Swiggy will launch its $1 billion-plus IPO in the coming weeks.
(Except for the headline, this story was not edited by NDTV staff and was published by a syndicated channel.)
