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New Delhi: One of the prominent quick commerce startups has been targeted by local associations of kirana stores this week. According to the claims made by retailer groups, the company is utilizing heavy discounts and cashbacks to win over market share and the small shops can hardly compete.
Associations of traders have reported that some of their products are sold at a lower cost price within specific urban areas. They say that these tactics can drive small retailers out of business eventually.
The startup has retorted by indicating that subsidized pricing is a common feature of competitive markets and good to the consumers. Another aspect the company emphasized on was that it collaborates with a large number of local suppliers as well as generates jobs in the form of delivery.
This has not been a new problem in the Indian retail industry. The same had been previously directed towards big e-commerce marketplaces. Nonetheless, with fast orders that guarantee delivery within 10-15 minutes, the competitive pressure on local shops has gone a notch higher.
The policy experts reckon that the government might start scrutinising transparency in pricing and competition practices in the future.
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