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

Predatory pricing war: Festivals are here, and so are 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, All India Consumer Product Distribution ( AICPD) has complained with India’s competition watchdog, Competition Commission of India. complaint is against quick commerce platforms for using predatory pricing which is offering products at deep discounts or below cost of products to lure and attract buyers which is destroying market for retailers across India.

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

Changing Consumer Behaviour

AICPD has also highlighted how se quick commerce platforms are changing consumer behaviour. 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 comfort of ir homes. retail umbrella association also highlighted that se quick commerce platforms are getting in touch with manufacturing companies directly to source cheaper products.

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

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

boom of Quick Commerce

se 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 . CCI is investigating when Swiggy is all set to make its market debut. And any verdict unfavourable from se platforms will have a huge impact on industry.