Annual turnover on Indian high-speed trading platforms expected to cross $6 billion this year (representative)
India's largest retail distributor group has asked the antitrust authority to investigate three fast-trading companies – Zomato's Blinkit, Swiggy and Zepto – for alleged predatory pricing, a letter said on Sunday.
Fast shipping is the new shopping craze in India, with companies promising delivery of everything from groceries to electronics within 10 minutes. This is 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 agency that fast-trading companies were charging predatory prices – or offering deep discounts and selling below the cost of attracting customers.
Zomato's Blinkit, Zepto and Swiggy, which runs delivery service Instamart and is backed by SoftBank, did not respond to queries from Reuters.
The letter said several consumer goods companies were doing business directly with fast-moving companies to expand their reach, sidelining traditional sellers who for decades went from one store to another to deliver orders.
Such practices make it “impossible for traditional retailers to compete or survive,” said the letter, which is not public but was seen by Reuters.
“Take protective measures for traditional distributors and small retailers to safeguard their interests,” the Competition Commission of India (CCI) urged.
The CCI also did not respond to a Reuters query and AICPDF declined to comment on the letter.
Annual revenue on Indian high-speed trading platforms is expected to exceed $6 billion this year, with Blinkit having a market share of almost 40%, while Swiggy and Zepto each have around 30%, according to research firm Datum Intelligence.
The CCI has the authority to launch an investigation on its own if it finds substantiated complaints, a government official told Reuters on Sunday, asking not to be named because he was not authorized to speak publicly.
The CCI's investigative unit found in August that larger e-commerce players, Amazon and Walmart's Flipkart, were violating local laws through predatory pricing, allegations the companies deny.
Reflecting the strength of the fast-trading sector, Zomato shares have doubled this year and Swiggy is set to launch its $1 billion-plus IPO in the coming weeks.
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