Piyush Goyal pushes for collaboration between quick commerce, Kirana stores

Commerce and Industry Minister Piyush Goyal has stated that Quick Commerce must collaborate with Kirana stores for last-mile delivery if they want to sustain themselves in the long run and avoid losses.

Speaking to CNBC TV18 at the 10th anniversary of the Make In India programme, Goyal noted that while quick commerce may capture business by incurring losses in the short term, a successful model will need to involve local retailers.

He emphasised that the government supports technology but expects e-commerce companies to comply with the law. Goyal also mentioned that the Open Network for Digital Commerce (ONDC) would significantly expand in the coming months, providing opportunities for small retailers. Recently, he expressed concerns about the social disruption caused by the rapid growth of e-commerce, describing it as a matter of concern rather than pride.

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A few days ago, the Department for Promotion of Industry and Internal Trade (DPIIT) forwarded a complaint against quick commerce companies to the Competition Commission of India (CCI). The complaint, lodged by a retail industry body, alleged that these companies engage in predatory pricing and monopolistic practices, violating anti-trust regulations. Sources indicated that the retail body initially approached the Commerce Ministry and DPIIT with concerns and may file a direct complaint with the CCI if necessary.

The All India Consumer Products Distributors Federation (AICPDF) has also raised alarms over predatory pricing and deep discounting practices by quick commerce platforms. They warned of a mass non-cooperation movement among FMCG distributors, claiming that quick commerce disrupts traditional retail networks and threatens brand value.

AICPDF has urged FMCG companies to regulate pricing strategies to protect brand integrity and distribution networks. They warned that unfair competition from quick commerce platforms could disrupt FMCG supply chains. The federation’s letter called for immediate action from FMCG companies to safeguard long-established retail relationships and prevent a potential breakdown of traditional supply chains.

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