Traders accuse quick commerce platforms of flouting rules

The Confederation of All India Traders (CAIT) has alleged that Quick Commerce (QC) platforms like Blinkit, Swiggy Instamart, and Zepto, are misusing Foreign Direct Investment (FDI) to dominate suppliers, control inventory, and fund predatory pricing.

In a whitepaper released on Wednesday, CAIT criticised QC platforms for misusing over ₹54,000 crore in FDI, by not investing these funds in building infrastructure or long-term assets instead, using them to subsidise operational losses, control supply chains, and offer predatory discounts through select preferred sellers.

Praveen Khandelwal, secretary general of the traders' body, states that quick-commerce strategies are disrupting the market, leaving 30 million Kirana stores struggling to compete and forcing many small retailers out of business. Khandelwal is also a BJP MP from the Chandni Chowk constituency in Delhi.

The whitepaper claims that QC platforms are violating the Competition Act, 2002, by restricting competition through exclusive deals with preferred sellers, effectively blocking independent retailers.

“These practices have allowed QC platforms to capture 25-30% of the market once dominated by Kirana stores, putting many traditional retailers on the brink of closure”, the whitepaper said.

The traders' body further alleges that QC platforms withhold seller information from consumers while concealing FDI violations and anti-competitive practices.

“The QC platforms use vertical agreements to control supply, pricing, and distribution, causing significant harm to competition. These platforms use their dominant position to manipulate prices and control inventory, disadvantaging independent sellers”, the paper added.

CAIT urged immediate regulatory intervention to hold QC platforms accountable, warning that unchecked growth, driven by foreign capital, threatens India’s small retail ecosystem.  The traders’ body called on the government to enforce stricter oversight through the proposed consumer protection (E-commerce) Rules, and E-commerce Policy and ensure that QC platforms operate with greater accountability.

Khandelwal acknowledged Union Commerce Minister Piyush Goyal’s recent statements, underscoring that such unfair practices by QC platforms will not be tolerated. “Goyal emphasised the importance of fostering alignment between QC platforms and local Kirana stores for faster deliveries without bypassing traditional retail, which is greatly welcomed by the business community of the Country”, he stated.