Indian distributors file antitrust case against Zomato, Swiggy, Zepto over deep discounting

INDIA – Court filings reveal that a group of Indian consumer products distributors has initiated an antitrust suit against fast-delivery giants Zomato, Swiggy, and Zepto, urging regulators to probe into claims of predatory deep discounting practices.

The All India Consumer Products Distributors Federation (AICPDF) has taken legal action by filing a case with the Competition Commission of India (CCI).

The filing alleges a disturbing trend of aggressive discounting and predatory pricing by quick commerce platforms such as Zomato’s Blinkit, Swiggy’s Instamart, and Zepto, which has resulted in unfair pricing models that local brick-and-mortar stores simply cannot match.

While Zomato and Swiggy have not responded to Reuters’ inquiries and Zepto has declined comment, the CCI has yet to release an official statement.

The case could lead to a comprehensive investigation or be dismissed if found to lack merit.

Representing 400,000 distributors, AICPDF supplies products from major brands such as Nestle, Unilever, and Tata to 13 million retail outlets across India.

A recent Datum Intelligence survey of 3,000 quick commerce shoppers revealed that 36% had reduced visits to supermarkets and 46% had cut back on purchases from independent stores.

Industry estimates indicate that Blinkit holds a 40% market share with 1,007 small warehouses, while Zepto and Swiggy Instamart capture 29% and 26%, respectively.

These competitive pressures have driven industry giants including Mukesh Ambani, Amazon, and Flipkart to adopt fast delivery strategies in select markets.

India’s e-commerce industry has come under intense scrutiny amid allegations that major players, including Amazon and Walmart’s Flipkart, have engaged in practices favoring select sellers and employing predatory pricing tactics.

A recent antitrust investigation revealed that these strategies harm smaller retailers, although both companies have firmly denied the allegations.

The burgeoning quick commerce sector, which delivers consumer products within 10 minutes from nearby neighborhood warehouses, has become increasingly popular with customers.

This fast, on-demand service has unsettled many small retailers, as shoppers now rely on apps for everyday essentials ranging from milk to pulses.

Bernstein forecasts that this sector will surge from a modest US$200 million in 2021 to an astonishing US$35 billion by 2030, signaling explosive growth and a major shift in consumer behavior.

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