Yes, the quick commerce boom is hurting small businesses and traditional retailers in India:
Market share
Quick commerce platforms are taking market share from both small and large retailers.
Competition
Quick commerce platforms are competing with traditional retailers on price and offering a convenient way to order and receive groceries and other items.
Distribution
Quick commerce platforms are becoming direct distributors for major FMCG companies, which threatens the livelihood of traditional distributors.
Dark stores
Quick commerce platforms are running "dark stores" that could disrupt the competitive balance.
FDI regulations
Quick commerce platforms may be violating foreign direct investment (FDI) regulations.
Centre steps in to check if quick commerce growth Is hurting
The All India Consumer Products Distributors Federation (AICPDF) has raised concerns about the rapid growth of quick commerce platforms, including Blinkit, Zepto, and Swiggy Instamart. The AICPDF has called for an investigation into the operational models of these platforms.
The unregulated growth of rapid commerce platforms is resulting in an imbalanced competitive environment, jeopardizing the sustainability of small "mom-and-pop" shops that have historically supported India's retail industry. The association called upon the government to guarantee that the development of e-commerce remains equitable.
Union Minister of Commerce and Industry Piyush Goyal said recently that the exponential growth of e-commerce was a "matter of concern". However, he clarified that he was not against e-commerce but wanted these platforms to operate fairly.