The fast-growing quick commerce companies may have to face a roadblock this festive season. Even before the spectacular festive sales, the shadow of CCI’s investigation has started looming over the quick commerce companies. If irregularities are found in the CCI investigation, restrictions can be imposed on these companies.
DPIIT receives complaints from retailers
According to a Mint report, DPIIT i.e. Department for Promotion of Industry and Internal Trade has asked the Competition Commission of India (CCI) to investigate the complaints received against quick commerce companies. According to the report, local retailers have lodged complaints with DPIIT against quick commerce companies like Blinkit and Zepto.
The Union Minister had recently given a warning
Mint has given this information quoting two sources related to the matter. This news of CCI investigating e-commerce companies has come at a time when recently Union Commerce Minister Piyush Goyal has commented on this. Goyal had warned about the possibility of social disruption by e-commerce companies and the danger of predatory pricing.
This is how competition from the market is ending
Predatory pricing is the trend when a seller offers a huge discount. In such a situation, competition ends for other sellers. For example, e-commerce companies including quick-commerce platforms bring huge discounts during festive season sales. Traditional retailers, especially those running small shops, are unable to compete with them and their market is put at risk.
These challenges came with Quick Commerce
The rise of e-commerce has raised the possibility of predatory pricing and hence competition in the market being affected. Now the rise of quick commerce companies has posed a different kind of challenge. Quick commerce companies are making delivery within 10 minutes with discounts. This means that in many cases these companies are delivering goods to your home faster than the time it would take you to go and buy goods from the nearby shop. Along with this, they are also offering you huge discounts. This can end the business of local shopkeepers. Due to this, restrictions can be imposed on quick commerce companies by CCI.
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