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Quick commerce companies quizzed by government over FDI, operating model

Economic Times

Economic Times · 6m ago

Quick commerce companies quizzed by government over FDI, operating model

The Indian government is scrutinizing quick commerce companies like Blinkit, Swiggy Instamart, Zepto, and Bigbasket over their foreign direct investment (FDI) compliance and impact on small retailers. Officials are concerned about potential violations, road safety issues from rapid delivery, and the effect on kiranas. Despite rapid growth and capital raising by companies, the Confederation of All India Traders claims these firms misuse FDI to disrupt the retail market, posing threats to small grocery shops.

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Trade bodies decry ‘unregulated’ and ‘unethical’ practices of ecommerce and quick commerce companies

Economic Times

Economic Times · 3m ago

Trade bodies decry ‘unregulated’ and ‘unethical’ practices of ecommerce and quick commerce companies

Industry bodies, including CAIT, AIMRA, and ORA, have raised concerns over the unregulated practices of ecommerce and quick commerce companies in India, highlighting issues like predatory pricing and deep discounting. These activities allegedly violate FDI regulations and focus on boosting valuations rather than genuine business development. The conclave called for stricter implementation of FDI and ecommerce policies, a ban on inventory-driven operations, and the formation of an independent body to oversee digital commerce.

Centre Steps In To Check If Quick Commerce Growth Is Hurting Kirana Stores Biz

Inc42 · 11m ago

Centre Steps In To Check If Quick Commerce Growth Is Hurting Kirana Stores Biz

Government ministries are investigating the impact of quick commerce on traditional mom-and-pop stores in India, considering whether it is disrupting their business unfairly. This follows a request from a retailer group to Union minister Piyush Goyal to probe the practices of quick commerce players like Blinkit and Swiggy Instamart, citing violations of FDI norms. Goyal has previously criticized the predatory pricing strategies of e-commerce giants like Amazon.

Battle for Fair Play: Quick Commerce Under Fire over ‘FDI, Competition Rules Violation; CAIT Demands Action

OutlookIndia

OutlookIndia · 6m ago

Battle for Fair Play: Quick Commerce Under Fire over ‘FDI, Competition Rules Violation; CAIT Demands Action

The Confederation of All India Traders (CAIT) has accused quick commerce companies like Swiggy Instamart, Zomato’s Blinkit, and Zepto of breaching FDI rules. CAIT claims these firms misuse foreign investments to dominate the Indian retail market by controlling inventory and prices, which threatens small retailers. Despite raising significant funds, these companies allegedly haven't invested in infrastructure but use their influence for predatory pricing. CAIT seeks governmental action to enforce compliance with FDI and competition rules.

Quick Commerce was lapped up by the urban public, but has a long way to go

Economic Times

Economic Times · 1y ago

Quick Commerce was lapped up by the urban public, but has a long way to go

Quick commerce in 2023 and was embraced by urban consumers. However, the concept still has a long way to go before becoming mainstream. The rapid delivery of goods and services offered by quick commerce companies has gained popularity, but challenges such as profitability and sustainability remain. Despite the growing demand, the article highlights the need for further innovation and infrastructure development to make quick commerce a viable business model.

Unit Economics, New Markets, Green Miles: How EV Fleet Operators Are Riding The Quick Commerce Wave

OutlookIndia

OutlookIndia · 3m ago

Unit Economics, New Markets, Green Miles: How EV Fleet Operators Are Riding The Quick Commerce Wave

Electric vehicle (EV) fleet operators are fueling India's shift towards quick commerce by transitioning from petrol-powered scooters to EVs. Companies like Blinkit and Swiggy aim for a 100% EV fleet by 2030, while rivals like Zepto are expanding dark stores in major cities. EV leasing companies such as Yulu are experiencing double-digit growth. Despite challenges like charging infrastructure, the quick commerce sector's electrification is expected to drive significant EV adoption, aligning with government sustainability goals.

CAIT accuses Blinkit, Zepto, Instamart of exploiting FDI to undermine kiranas

YourStory

YourStory · 8m ago

CAIT accuses Blinkit, Zepto, Instamart of exploiting FDI to undermine kiranas

The Confederation of All India Traders (CAIT) has accused quick commerce platforms like Blinkit, Swiggy Instamart, and Zepto of misusing Foreign Direct Investment (FDI). CAIT claims that these platforms are using FDI to subsidize unsustainable discounts and dominate supply chains, pushing small retailers out of the market. The white paper alleges violations of India's FDI policies and the Competition Act, stating that these platforms restrict market access for independent retailers through tactics such as predatory pricing and controlling inventory. CAIT calls for regulatory action to address this issue and protect small retailers.

DPIIT holds discussions with stakeholders to further promote FDI

YourStory

YourStory · 6m ago

DPIIT holds discussions with stakeholders to further promote FDI

The Department for Promotion of Industry and Internal Trade (DPIIT) held discussions with stakeholders, including law firms, to enhance the business environment for foreign investors and boost foreign direct investment (FDI) in India. Key issues discussed included amending policies for single-brand retail trading and e-commerce FDI. The meeting involved representatives from the Reserve Bank of India, government departments, and industry chambers. India saw a 45% increase in FDI to $29.79 billion in April-September 2024, mainly in services and technology sectors.

Government to quick commerce players: throw more light on dark store ownership structures

Economic Times

Economic Times · 10m ago

Government to quick commerce players: throw more light on dark store ownership structures

Government officials in India have been conducting inquiries with senior e-commerce executives to understand the ownership structures of quick-commerce firms and their dark stores. Foreign-funded online marketplaces are not allowed to own inventory or control sellers, so dark stores are owned by separate entities. The government is seeking clarity on compliance and the impact of quick-commerce on traditional retailers. However, executives and investors in the sector do not expect major disruptions. There is discussion of adding a policy framework for quick-commerce within the broader e-commerce policy.

Fintech SIMPL under ED scanner for alleged Rs 900 Cr FEMA breach

YourStory

YourStory · 1d ago

Fintech SIMPL under ED scanner for alleged Rs 900 Cr FEMA breach

The Enforcement Directorate (ED) has filed a complaint against Bengaluru-based fintech startup SIMPL, accusing it of violating India’s foreign exchange laws by receiving over Rs 913 crore in foreign funds without proper approvals. SIMPL allegedly misclassified its activities as IT services to secure FDI under the automatic route, while actually operating in financial services, which require government approval. The company also issued convertible notes without necessary governmental consent, further violating regulatory requirements.

Quick Commerce Platforms Creating Uneven Playing Field:AICPDF

Inc42 · 11m ago

Quick Commerce Platforms Creating Uneven Playing Field:AICPDF

The All India Consumer Products Distributors Federation has expressed concerns over the compliance of quick commerce platforms with FDI norms in a letter to Union Minister Piyush Goyal. The federation is calling for regulation of these platforms, stating that their unchecked expansion is negatively impacting small brick and mortar stores. This follows Goyal's recent remarks that the exponential growth of ecommerce in India is a concern rather than a point of pride.

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