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Quick commerce sales expected to exceed $6 billion this

year

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CCI can launch an investigation if finds complaint has

merit

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Quick commerce firms have not responded to request for

comment

By Aditya Kalra

NEW DELHI, Oct 20 (Reuters) - India's biggest group of

retail distributors has asked the antitrust authority to

investigate three quick commerce companies - Zomato's

Blinkit, Swiggy and Zepto - for alleged predatory pricing, a

letter showed on Sunday.

Quick commerce is a new shopping rage in India, with

companies promising deliveries of anything from groceries to

electronics within 10 minutes, reshaping how Indians shop and

challenging e-commerce giants such as Amazon ( AMZN ).

In a letter dated Oct. 18, All India Consumer Products

Distributors Federation (AICPDF), which represents 400,000

retail distributors of major companies including Nestle

and Hindustan Unilever, told the antitrust

body quick commerce firms were practising predatory pricing - or

offering deep discounts and selling below cost to lure

customers.

Zomato's Blinkit, Zepto, and Swiggy, which runs the

Instamart delivery service and is backed by SoftBank,

did not respond to Reuters queries.

The letter said several consumer goods companies were

dealing directly with quick commerce firms to increase their

reach, sidelining the traditional salespeople who for decades

went from one shop to another to deliver orders.

Such practices make "it impossible for traditional retailers

to compete or survive," said the letter, which is not public but

was seen by Reuters.

"Implement protective measures for traditional distributors

and small retailers to safeguard their interests," it urged the

Competition Commission of India (CCI).

The CCI also did not respond to a query from Reuters and

AICPDF declined to comment on its letter.

Annual sales on Indian quick commerce platforms are set to

exceed $6 billion this year, with Blinkit having a nearly 40%

market share, while Swiggy and Zepto around 30% each, research

firm Datum Intelligence said.

The CCI has powers to initiate an investigation on its own

if it find merit in complaints, a government official told

Reuters on Sunday, asking not to be named because he was not

authorised to speak publicly.

The CCI's investigation unit in August found bigger

e-commerce players, Amazon ( AMZN ) and Walmart's ( WMT ) Flipkart,

breached local laws through predatory pricing, allegations the

companies deny.

Reflecting the strength of the quick commerce sector,

Zomato's shares have doubled this year and Swiggy will in the

coming weeks will launch its over $1 billion IPO.