CAIT’s: In today’s fast-paced society, with growing competition between different sectors, one issue that cannot be ignored is how quick commerce applications are affecting the livelihoods of small retailers. A shocking white paper report by the Confederation of All India Traders (CAIT) revealed how these quick commerce platforms are threatening the survival of small ‘Kirana Stores’ (small retail shops), putting them at serious risk.
CAIT’s Report–
CAIT released a White Paper after observing raising concerns about how quick commerce platforms like Zepto, Blinkit, Swiggy, and Instamart operate. The report claims that these platforms are undermining and ignoring India’s retail economy and have urged regulatory bodies to take action.
According to reports, the secretary of the CIAT, Praveen Khandelwal, condemned the platforms for misusing Foreign Direct Investment (FDI) rules at a press conference. Khandelwal further raised concerns about how these quick commerce platforms are dominating suppliers, controlling inventory, and misusing FDI to fund the pricing. This is costing small businesses a lot. He further stated, “These platforms are aggressively pushing small retailers out of the market.”
The document released by the CAIT also claims that these quick commerce platforms are backed by over Rs 54,000 crore in FDI. However, they do not use this funding to improve infrastructure, instead, they use it to lure customers with heavy discounts, offer discounts through their preferred small sellers, and cover the losses they incur.
How Are Small Retailers Getting Affected?
The convenience of getting everything at the doorstep, within a few minutes, is the catch. Customers are also lured by heavy discounts, cashback offers, digital coins, quick refund services, and many different schemes these platforms run. The quick commerce platforms have an excellent marketing strategy but at the cost of what?
These quick commerce platforms are eating up the business of over 3 crore small retailers. These business owners are urged to comply with these platforms on account of their business.
Reported by ANI, the document by CAIT highlighted several violations of India’s Competition Act and FEMA, including restrictions on market access, lack of transparency, and unfair pricing. It also says that these strategies have helped such platforms take control of over 25-30% of the market that was once owned by Kirana stores. These practices are putting the survival of Kirana stores at risk.
