Mumbai: Kirana Stores and FMCG Distributors Have Approached the Fair Trade Regulator Seeking an Investigation Into The Anti-Competitive Practices of Quick-Commerce Platforms Like Swiggy Instamart, Zepto & Blinkit.
In a petition submitted to the Competition Commission of India On Feb 28, Industry Body All India Consumer Products Distributors Federation (AicPDF), which reepresnts small retail businessesalleged that these platforms are Resorting to Deep Discounting and Predator pricingPushing small retailers out of business. Their Conduct, The Industry Body, said “appears to eliminate” competitors from the market. Toi has reviewed parts of the petition. Aicpdf Confirmed submission of the petition but declined to share details. Zepto and swiggy instamart declined to comment on the matter whose mother is zomato did not respond.
The industry body alleged that the platforms have deep pockets and are “indulging in deliberate losses by way of predatory pricing” to expand in the market. It said that small retailers and traditional distributors are not due to match the discounts offered by the platforms, thereby taking a business Hit and Slipping into Losses.
In certain cases to lure new customers, Quick-Commerce Platforms Dole Out Introductory offers in addition to the discussions, which often are in the nature of predatory pricing, aicpdff.
The federation has been taken on Quick Commerce PlatformsHaving sent a letter to the cci in oct through the ministry of commerce. This time, however, they have directed a petition with the cci.
Quick Commerce, Or 10-Minute Delivery Platforms, Which Initially Started Out Selling Growseries have rapidly expanded especially in the metros and havie moveed beyond beyond beyond beyond kitchen staples to Non-Crocery Items Including Small Appliances, Mobile Phones, Electronics, Jewelery and Apparel. Brands, which have found a new avenue of distribution with Quick Commerce, Are More Than Wiling to Test the Rapid Delivery Model and Continue to Partner with these platforms as they are out Customers.
A Survey by Market Research Firm Datum Intelligence Late Last Year Covening 3,000 Respondents Across 10 Cities Had Showed That About 82% of Buyers Have Moved at Least 25% of Kirana Purchases to Quick Commerce. Investor Appetite for Quick Commerce Has Surged Amid Wide Consumer Adoption with Zepto Bagging $ 1.2 Billion in Funding in Funding Last Year in an otherwise tepid market. The company is planning to file for public listing this year. Aicpdf said that Quick Commerce is “Wiping out millions of retail shops and distributors from the market”.
Offline retailers across segments who have alredy been hit by the advent of online commerce is up against rapid delivery platforms. Alredy, The National Restaurant Association of India (NRAI) is Pursuing a separete legal case against 10-minute food delivery services (offering private labelled food) by zomato and swaggy.
(Tagstotranslate) Business News (T) Retail Businesses (T) Quick Commerce Platforms (T) Predator Pricing (T) FMCG DISTRIBUTS (T) Competition Commission of India
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