Zomato stock in focus today as retail group AICPDF calls for CCI probe into Blinkit

Zomato’s stock is in the spotlight today as the All India Consumer Products Distributors Federation (AICPDF) has called on the Competition Commission of India (CCI) to investigate three major players in the quick commerce sector: Blinkit (Zomato-owned), Swiggy, and Zepto. The AICPDF has alleged that these companies are engaging in predatory pricing practices, selling products below cost to attract customers and threatening the survival of traditional retail businesses.

According to a letter dated October 18 and reported by Reuters, the AICPDF claims that deep discounts offered by these companies are undermining the traditional distribution model. The letter emphasizes that by bypassing distributors and selling directly to consumers, these quick commerce firms are creating unfair competition that threatens small retailers.

The AICPDF’s letter asks the CCI to safeguard the interests of traditional distributors and retailers, and urges the regulatory body to take action. So far, Blinkit, Swiggy, and Zepto have not responded to inquiries regarding the allegations, and the CCI has yet to comment on the appeal.

As quick commerce continues to grow in India, Zomato has seen its shares double this year, while Swiggy is gearing up for a $1 billion IPO. The outcome of this investigation could have significant implications for the industry.