FMCG Distributors File Petition Against Quick Commerce Platforms

The All India Consumer Products Distributors Federation (AICPDF) has filed a petition with the Competition Commission of India (CCI) against leading quick commerce platforms—Blinkit, Swiggy’s Swiggy Instamart, and Zepto. 

The petition, submitted on February 28, accuses these platforms of selling products at 50% lower prices than those available in traditional and modern trade outlets. The distributors argue that this practice is unfair and harms both offline retailers and FMCG distributors by disrupting market competition.  

Impact on Retailers and Traditional Trade

 AICPDF claims that such deep discounting has resulted in the closure of over 2,00,000 local retail shops in nearly 75-80 cities where these quick commerce platforms operate. The petition highlights that if FMCG companies are funding these discounts, it raises concerns about why quick commerce, which currently accounts for only 9% of overall trade, is being prioritised over established retail formats. The industry body has also submitted evidence of 25 discounted products to support its claims of predatory pricing and possible exclusive supply agreements.  

Previous Complaints and Regulatory Actions

 This is not the first time AICPDF has raised concerns. In October 2024, it had written to CCI and the Ministry of Commerce, urging an investigation into Blinkit, Zepto and Swiggy Instamart. This time, the organisation has directly approached the antitrust regulator, reinforcing its stance against the growing dominance of quick commerce platforms. The petition also suggests introducing a minimum discount limit of 10% on FMCG products to maintain a fair playing field for all sellers.  

Market Growth and Investor Interest in Quick Commerce

Despite the controversy, quick commerce has been expanding rapidly. A March 4 research note by Bernstein states that the sector has grown to a $10 billion market within two years, with projections to surpass $75 billion by 2032. Research firm Datum Intelligence found that 82% of buyers have shifted at least 25% of their purchases from Kirana stores to quick commerce platforms. Zepto alone raised $1.2 billion in funding last year and is preparing for an IPO in 2025.  

Concerns Over Market Monopoly and Future Challenges

AICPDF warns that the deep pockets of quick commerce firms enable them to engage in deliberate losses through predatory pricing, pushing small retailers out of business. 

In response to similar issues, the National Restaurant Association of India (NRAI) has also filed a separate case against Zomato and Swiggy over their 10-minute food delivery services. While analysts predict that quick commerce firms may reduce discounts due to profitability pressures, traditional retailers continue to demand stricter regulations to prevent market monopolies.  

Conclusion

The petition by AICPDF has reignited the debate on market fairness and competitive practices in India’s retail sector. While quick commerce platforms provide convenience and competitive pricing to consumers, their rapid expansion raises concerns about sustainability, fairness, and the survival of traditional retailers. The CCI’s response to this complaint will be crucial in shaping the future regulatory framework for quick commerce in India.

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