India's Fast-Delivery Giants Face Heat Over Deep Discounts
Indian consumer products distributors have filed an antitrust case against big fast-delivery businesses of Zomato, Swiggy and Zepto, calling for an investigation into alleged deep discounting practices that are upsetting smaller retailers. Quick commerce sales are booming in India, with companies like Zomato, Swiggy and Zepto expanding their warehouses and gaining market share. The All India Consumer Products Distributors Federation has asked the Competition Commission of India to investigate how discounts are doled out by these companies.
- This case highlights the growing tension between online retailers seeking to undercut prices to attract customers, and local distributors who are struggling to compete on price, potentially disrupting the retail ecosystem in India.
- Will policymakers establish clear guidelines for fair competition in e-commerce, or will the fast-growing quick commerce sector continue to be driven by profit margins over social responsibility?