Zomato, Swiggy, Zepto In Soup As Antitrust Plaint Filed Against Them For Deep Discounting

Consumer product distributors have lodged an antitrust complaint against leading rapid-delivery firms Zomato, Swiggy, and Zepto, alleging unfair pricing strategies and deep discounting, according to legal documents.

The complaint calls for an investigation into these practices, reported Reuters.

Photo Credit: PTI

The e-commerce sector has long faced scrutiny over online pricing mechanisms. Last year, an antitrust investigation revealed that Amazon and Walmart-owned Flipkart favoured select sellers and engaged in "predatory pricing," which negatively impacted smaller retailers-allegations both companies have denied.

Quick commerce, which promises to deliver consumer goods within 10 minutes via local warehouses, has gained popularity among customers but has raised concerns among smaller retailers.

Many consumers now opt to order everyday essentials, such as milk and pulses, through apps instead of visiting local shops. Investment firm Bernstein predicts that India's quick commerce industry will grow to $35 billion by 2030, up from $200 million in 2021.

The All India Consumer Products Distributors Federation (AICPDF) has submitted a complaint to the Competition Commission of India (CCI), requesting an inquiry into various practices adopted by Zomato's Blinkit, Swiggy's Instamart, and Zepto, particularly their discounting methods.

The group's filing, reviewed by Reuters but not publicly available, claims that "predatory pricing and deep discounting by quick-commerce platforms have resulted in unfair pricing models."

Zomato and Swiggy did not respond to requests for comment, while Zepto declined to issue a statement. The CCI also did not provide a response.

If the CCI proceeds with the investigation, it could pose further challenges for Zomato and Swiggy, both of whom were previously found in violation of competition laws in their food delivery businesses. That separate case remains ongoing.

Meanwhile, Zepto is preparing for an IPO after securing funding at a $5 billion valuation last year.

The competition watchdog will now review the complaint and may instruct its investigative unit to examine the matter in detail. This process could take several months and may require companies to justify their pricing models. If the commission finds no grounds for the case, it can dismiss the complaint.

AICPDF, which represents 400,000 distributors supplying brands like Nestlé, Unilever, and Tata to 13 million retail shops across India, argues that local brick-and-mortar stores "cannot compete" with the aggressive pricing of quick commerce firms.

A recent survey by Datum Intelligence, which polled 3,000 Indian quick-commerce users, found that 36% had reduced supermarket visits, while 46% had cut back on purchases from small independent retailers.

In its complaint, AICPDF compared the online and offline pricing of 25 products, including those from Nestlé and Hindustan Unilever. For example, a Nescafé coffee jar that small retailers purchase at approximately ₹622 ($7.14) is available for ₹514 on Zepto, ₹577 on Swiggy Instamart, and ₹625 on Blinkit.

Datum Intelligence estimates that Blinkit leads India's quick commerce market with a 40% share and operates 1,007 micro-warehouses, while Zepto holds a 29% share with more than 900 stores. Swiggy's Instamart service controls 26% of the market.