Q-commerce platforms under scrutiny for predatory pricing & monopoly

The All India Consumer Products Distributors Federation (AICPDF) has flagged concerns about quick commerce (q-com) platforms engaging in predatory pricing, deep discounting, and monopolistic behaviour. The association claims these practices threaten the viability of traditional retailers and distributors.

Q-com platforms, operating through dark stores, are alleged to bypass existing regulations governing inventory-based e-commerce, which, according to AICPDF, violates Indian laws both in letter and spirit.

The operational model of q-com platforms has been called into question in relation to India's Foreign Direct Investment (FDI) rules, with the distributors arguing that these platforms are exploiting loopholes to operate as direct distributors for FMCG companies, undermining the traditional supply chain.

Many q-com platforms have expanded using franchise models, which AICPDF claims have been implemented without sufficient due diligence. The association has urged for the establishment of a Franchise Act, similar to that in the USA, to safeguard franchisees' rights, as current agreements are often one-sided.

The AICPDF also raised concerns previously shared with government ministries about the use of private vehicles for food delivery and corporate purposes, which may pose risks to both public health and road safety.

The trade body has requested the Competition Commission of India (CCI) to conduct a thorough investigation into the operations of q-com platforms and to implement protective measures for traditional retailers and distributors. They have also sought a dialogue between all key stakeholders, including FMCG companies, q-com platforms, traditional distributors, and small retailers.

This marks the latest step in the growing conflict between traditional supply chains and the rapidly expanding quick commerce sector.