Headline: Indian Retail Giant Calls for Antitrust Probe into Quick Commerce Firms

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Headline: Indian Retail Giant Calls for Antitrust Probe into Quick Commerce Firms

In New Delhi, the All India Consumer Products Distributors Federation (AICPDF), representing 400,000 retail distributors, has requested an antitrust investigation into three rapid commerce companies. The companies in question are Zomato's Blinkit, Swiggy, and Zepto, which are accused of engaging in predatory pricing. The AICPDF, representing distributors of major brands like Nestle and Unilever, claims these firms offer deep discounts to attract customers, selling products below cost.

In a letter dated October 18 to the Competition Commission of India (CCI), the federation stated that these rapid commerce platforms bypass traditional sales channels by making deals directly with consumer goods companies. According to the letter, this undermines the ability of traditional retailers to compete, threatening their existence. The AICPDF has urged the CCI to implement protective measures for traditional distributors and small retailers.

Rapid commerce, which promises delivery of various products from groceries to electronics within 10 minutes, is transforming shopping habits in India. According to research by Datum Intelligence, the sector is expected to achieve over $6 billion in sales this year. Blinkit leads with approximately a 40% market share, followed by Swiggy and Zepto with around 30% each.

The CCI, with authority to independently initiate investigations if the complaints are deemed legitimate, has yet to respond to queries regarding this matter. Similarly, Zomato's Blinkit, Zepto, and Swiggy, which is preparing for an IPO valued above $1 billion in the coming weeks, have not responded to requests for comments.

This request for an investigation follows an August finding by the CCI's investigation unit that larger e-commerce players, including Amazon and Walmart's Flipkart, violated local laws due to predatory pricing. Both companies deny this allegation. The growth of the rapid commerce sector is evidenced by the doubling of Zomato's stock value this year.