Small trader woes heighten as quick commerce takes over

Updated: Nov 21st, 2024


With the fast-growing market of quick commerce (Q-commerce) including Swiggy Instamart, Zepto, Blinkit, etc, small grocery store traders are grappling with fewer customers.

Concerns are rising that over 2 lakh grocery stores across India have shut down due to online grocery trade. Businesses of 45% of stores in major cities and 25% in Tier 2-3 cities have been affected. Consequently, owners of grocery stores are exploring alternative businesses.

Quick commerce players do not maintain physical stores. They store their inventory in warehouses and have a fleet of delivery personnel ready for dispatch.

These warehouses are strategically located every 10-12 km to ensure quick delivery of groceries to customers across the city. As a result, orders can be delivered within half an hour.

The quick commerce sector in India has seen significant growth in 2024. It has crossed the $1.2 billion mark and is expected to reach $6.1 billion by the end of the year. The sector is projected to further grow to $40 billion by 2030.

The All India Consumer Products Distributors Federation has requested the central government to keep quick commerce platforms away from the trade of certain goods.

The organisation has also conducted a survey regarding this according to which it is necessary to keep quick commerce away from the trade of certain goods in the interest of small traders across the country.

Around 46% of customers have turned to quick commerce. 

The store owners have demanded protection if this form is not filled, the trustees have the authority to request a waiver for the delay under Section 119(2)(b) of the Income Tax Act. Delay condonation applications were previously submitted to the CBDT (Central Board of Direct Taxes), where they remained unresolved for five years.

Recently, the Confederation of All India Traders (CAIT) claimed the quick commerce markets of India with the likes of Blinkit, Swiggy Instamart, and Zepto, of misusing foreign direct investment (FDI) to control inventories by taking unfair control over suppliers and being involved in predatory pricing.

“In response to multiple complaints filed by the trading community regarding FDI violations and the anti-competitive practices of quick-commerce companies such as Blinkit, Swiggy, and Zepto, we urge both the CCI and the ED to take swift action to prevent any further, irreparable damage to the businesses of small traders,” said BJP MP and CAIT secretary general Praveen Khandelwal.

Also read:

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