The All India Consumer Products Distributors Federation (AICPDF) has expressed concerns that the rapid and unchecked expansion of quick commerce platforms, namely Blinkit, Zepto and Swiggy Instamart, is leading to severe disruptions in the country’s traditional retail
Marking its entry into the ongoing tussle between the ecommerce and traditional retail ecosystem, the All India Consumer Products Distributors Federation (AICPDF) has urged the Union Minister of Commerce and Industry Piyush Goyal to initiate a thorough investigation into the operational models of quick commerce platforms along with implementing protective measures to safeguard the interests of small retailers and traditional distributors.
The body has expressed concerns that the rapid and unchecked expansion of quick commerce platforms, namely Blinkit, Zepto and Swiggy Instamart, is leading to severe disruptions in the country’s traditional retail and Fast-moving consumer goods (FMCG) network.
The FMCG distributors’ association, in its email to Goyal, has stated, “We would like to draw your attention to the pressing issue of quick commerce, which also needs careful scrutiny and regulation to protect small traders.”
“While we acknowledge the role of innovation and technology in shaping the future of commerce, the unchecked expansion of these quick commerce platforms is leading to severe disruptions in the retail ecosystem.”
The association has also urged the minister to ensure compliance with the foreign direct investment (FDI) regulations. It stated, “The FDI rules clearly prohibit ecommerce entities operating under the marketplace model from holding inventory or exercising control over the inventory sold on their platforms. However, it appears that these platforms may be engaging in practices that blur the lines between a marketplace and an inventory-based model, potentially violating FDI norms.”
The body has requested the minister to facilitate a dialogue between all stakeholders, including the representatives from the retail sector, FMCG companies and quick commerce platforms to establish fair and equitable business practices.
“The situation is not only creating an uneven playing field but is also threatening the livelihoods of millions of small retailers and distributors who have been the backbone of India’s retail sector for decades,” the federation stated.
