Zomato-owned Blinkit, Swiggy Instamart, and Zepto — three companies who mostly control India’s quick commerce landscape, are now facing an antitrust complaint over their alleged deep discounting practices. The All India Consumer Products Distributors Federation (AICPDF), a retail body that represents 400,000 distributors supplying goods to 13 million retail stores, has formally requested the Competition Commission of India (CCI) to investigate the pricing strategies of these platforms.
The complaint, reviewed by Reuters, accuses these companies of engaging in predatory pricing that makes it difficult for traditional retailers, particularly small independent stores and neighbourhood Kirana shops, to compete. The CCI will now assess the complaint and decide whether to launch a formal investigation. If the case moves forward, the companies will be required to justify their pricing models.
AICPDF’s filing reveals significant price disparities between what small retailers pay for consumer products and the prices at which the same goods are sold on quick-commerce platforms. An example is provided as well – a specific variant of Nescafe coffee jar that independent retailers purchase at ₹622 is available at a much lower price on these platforms — ₹514 on Zepto, ₹577 on Swiggy Instamart, and ₹625 on Blinkit. The distributors’ association argues that such deep discounting strategies undercut traditional businesses and create an unfair competitive landscape. According to AICPDF, these platforms benefit from direct partnerships with major consumer goods companies like Nestle, Hindustan Unilever, and Tata, allowing them to secure lower prices and pass on aggressive discounts to customers — which is something traditional retailers cannot match.
This marks the latest instance of the CCI being informed of predatory practices by firms – prior to this, it has scrutinized various e-commerce platforms over pricing policies, including a high-profile investigation into Amazon and Walmart-owned Flipkart, which were accused of favoring select sellers and engaging in predatory pricing. If the CCI finds merit in AICPDF’s current claims, it could initiate a deeper probe, which may require Blinkit, Swiggy Instamart, and Zepto to disclose details about their pricing strategies, supplier agreements, and discount structures. Depending on the findings, the platforms might be required to make changes to their business models or face financial penalties.
This is not the first time that Zomato and Swiggy have come under the CCI’s radar. Last year, the regulatory body launched an investigation into their food delivery businesses over concerns related to unfair pricing practices and preferential treatment of certain restaurants. That case is still ongoing, and the addition of a new antitrust complaint against their quick-commerce operations could further complicate things for them. Meanwhile, Zepto, which has rapidly expanded and is currently valued at $5 billion, is preparing for an initial public offering (IPO).
Currently, Blinkit leads India’s quick-commerce market with a 40% market share and operates over 1,000 small warehouses. It is followed by Zepto, which holds a 29% market share with more than 900 stores, and Swiggy Instamart, which has a 26% share. The market itself has steadily grown over the years as more and more companies promise to deliver within minutes from neighborhood warehouses. According to Bernstein, the Indian quick-commerce market is projected to reach $35 billion by 2030.
