Are Zepto, Blinkit, and Instamart using predatory pricing or gaining a competitive edge?

Predatory pricing war: Festivals are here, and so are the offers and discounts. Major quick commerce platforms are back with offers and sales, but when cheap products are raining on platforms like Zepto , Meesho, Instamart etc, the All India Consumer Product Distribution ( AICPD) has complained with India’s competition watchdog, Competition Commission of India. The complaint is against quick commerce platforms for using predatory pricing which is offering products at deep discounts or below the cost of products to lure and attract buyers which is destroying the market for retailers across India.

The AICPD represents 400,000 retailers across India. The letter sent to CCI mentioned that these quick commerce platforms are offering such deep discounts that it is difficult for the retailers to compete with them which is jeopardising the livelihood of millions of retailers.

Changing Consumer Behaviour

The AICPD has also highlighted how these quick commerce platforms are changing consumer behaviour. The whole idea of delivering products in 10 minutes, according to AICPD, is changing consumer behaviour as people are preferring to buy things in minimum time sitting in the comfort of their homes. The retail umbrella association also highlighted that these quick commerce platforms are getting in touch with manufacturing companies directly to source cheaper products.

This is leaving retailers in the lurch and is making it impossible for them to compete. Now the CCI will investigate the matter and if the competition watchdog receives any merit in the letter of AICPD and the concerns that they highlighted then the CCI will take appropriate action on these quick commerce platforms which might impact the way these platforms function.

The issue of predatory pricing is not coming up for the first time, in the past, the Competition Commission of India found out major e-commerce platforms like Amazon and Flipkart were involved in predatory pricing which violated Indian laws. However, these e-commerce majors denied the allegations.

The boom of Quick Commerce

These allegations from AICPD are coming at a time when quick commerce is growing like never before. Zomato ’s stock price has doubled, and it has reported profits driven by its growing Blinkit . The CCI is investigating when Swiggy is all set to make its market debut. And any verdict unfavourable from these platforms will have a huge impact on the industry.