CCI Seeks Details Of Quick Commerce Firms Market Share

SUMMARY

The CCI has reportedly asked the AICPDF for details on the relevant market share of the quick commerce players, following its complaint from a month ago

It has also asked for a clarity if the FMCG companies have any exclusive agreement for distribution

In March, the AICPDF president Dhairyashil Patil raised a complaint against the quick commerce giants, alleging unfair pricing and market monopolisation

The Competition Commission of India (CCI) has reportedly asked the All India Consumer Products Distributors Federation (AICPDF) for details on the relevant market share of each of the Quick Commerce players such as Blinkit, Zepto and Swiggy Instamart in the fast-moving consumer goods (FMCG) sector.

The competition watchdog has sought additional information from the distributor’s body on its complaint against these quick commerce startups, the Business Standard reported citing sources familiar with the matter.

Moreover, it has asked for a clarity if the FMCG companies have any exclusive agreement for distribution, one of the sources said.

Further, the CCI also requested evidence of quick commerce players forming tie-in-agreements to result in bundling products and selling the same as a package.

About a month ago, the AICPDF president Dhairyashil Patil raised a complaint against the quick commerce giants, alleging unfair pricing and market monopolisation.

The report further said that the commission has also sought evidence from the complainant of discriminatory pricing by any of the players from any consumer based on consumer location, device type or purchasing behaviour, along with the evidence of any product being sold below cost price.

This follows after the Food Safety and Standards Authority of India’s recent revelation that there have been over 21,000 consumer complaints against online food delivery apps registered in the past five fiscal years.

Notably, quick commerce giants have already been caught in the web of complaints from restaurant partners after having rolled out their 10-minute food delivery standalone apps, Bistro and Snacc, in January.

Prior to that, the Central Consumer Protection Authority received complaints with mentions of quick commerce labels refusing to make mandatory disclosures, such as expiry and best before date for grocery and other daily essentials being sold on their platforms.

Meanwhile, the quick commerce sector is expanding with numerous emerging brands entering the market with offerings such as clothing and medicines aside from groceries and food, to challenge the existing players in terms of the timelines.

Collectively Blinkit, Instamart and Zepto recorded nearly $1 Bn in sales in FY24.

However, the rising competition has set Blinkit and Swiggy Instamart off the adjusted EBITDA margin breakeven course by at least 12 months, according to Bernstein.

A Statista’s report suggests that revenue in the quick commerce sector is expected to jump 16.60% CAGR, resulting in a projected market volume of $9.95 Bn by 2029.