The Distributors' Body Approaches CCI against Quick Commerce Players Due to Unfair Pricing

According to reports, the Competition Commission of India (CCI) has received a petition from the All India Consumer Products Distributors Federation (AICPDF) accusing Blinkit, Zepto, and Swiggy Instamart of monopolising the market and charging unjust prices. According to a media report, AICPDF President Dhairyashil Patil made the petition. According to the petition, hyperlocal delivery and speedy trade have grown in popularity in recent years. Fast and effective delivery services are defined by the term "quick commerce." Products are typically delivered in a matter of minutes. The group also charged that these rapid commerce companies were influencing market competition by offering steep discounts and engaging in exclusive supply and distribution contracts. According to the petition, these activities have a detrimental effect on almost 10 million offline mom-and-pop shops nationwide.

Not a New Issue

The authority asked Piyush Goyal, the union minister of commerce, in a letter last year to closely examine the fast commerce giants' explosive expansion. In order to safeguard small business owners, it also asked the government to control the rapid commerce area. The AICPDF complaint was later forwarded to the CCI by the Department for Promotion of Industry and Internal Trade (DPIIT). The authorities' persistent efforts to suppress quick commerce companies coincide with Blinkit, Instamart, and Zepto's rapid growth and the loss of traditional retail establishments' clientele. The three main businesses are competing for market share in the nation's fast-food delivery, grocery, and home basics sectors, as well as 10-minute ambulance services. E-commerce giants like Amazon and Flipkart are working to increase their product offerings in this market as a result of this influence.

Voices Rising Against 10 Minutes Delivery Game

Concerns about the 10-minute delivery trend are still growing. According to a report last month, the National Restaurant Association of India (NRAI) was thinking of bringing a CCI action against Zomato and Swiggy in order to prevent their 10-minute meal delivery standalone apps, Bistro and Snacc, from being launched. Furthermore, according to a broking study by ICICI Securities, although these businesses continue to use discounts to draw clients, the item-level discounting strategy has lost some of its allure between November 2024 and January 2025. It is important to remember that Zepto, Instamart, and Blinkit together generated over $1 billion in revenue in FY24.

Rapid Commerce Conflict

The rapid commerce industry has evolved into a high-cash-burn sector, with companies allocating billions towards expansion and client acquisition. Industry estimates indicate that the aggregate monthly cash burn of rapid commerce entities, including new entrants, ranges between INR 1,300 and 1,500 crore—more than double in recent months.

Despite nearing operational breakeven in Q2 FY25, Blinkit’s losses escalated in Q3 FY25, with operating losses rising to INR 103 crore from INR 8 crore in the preceding quarter. Swiggy reported a net loss of INR 799 crore, while Instamart had an adjusted EBITDA loss of INR 578 crore in Q3, compared to INR 358 crore in Q2. Zomato's ability to continue investing in Blinkit stems from its financial stability. In November 2024, Zomato secured INR 8,500 crore in a qualified institutional placement (QIP) to enhance its balance sheet and finance its rapid commerce operations. As of December 31, 2024, Zomato possessed cash reserves amounting to INR 19,235 crore, providing adequate liquidity to support Blinkit's expansion.