Will govt-QC meetings result in strict regulations?
By Retail4Growth Bureau | January 02, 2025
Senior leaders from leading quick commerce companies reportedly met Government officials and were quizzed on many aspects related to their ownership, operations, pricing, and practices.
According to an ET report, senior executives from quick commerce companies such as Zepto, Blinkit, Swiggy Instamart and Bigbasket, met with government officials and addressed questions and concerns raised in terms of compliance with FDI norms, impact on Kirana stores, warehouse ownership and operations, among other aspects.
According to the report, this is the first of such meetings wherein officials at the Department For Promotion of Industry and Internal Trade (DPIIT) sought clarity on a range of aspects related to the operations of quick commerce companies and also expressed their concerns over the impact of quick commerce on the country’s small retailers. Besides details on the quick commerce companies’ dark store (warehouse) operations and logistics and the related question of conformity with the country’s FDI norms, the govt representatives sought more information to understand the impact of quick commerce on kirana stores, given its prominence as a talking point today.
While the quick commerce executives have reportedly reassured that the businesses of kirana stores will not be impacted by their model, it remains to be seen how the govt will view the situation and if there are regulations likely to be in place to create a level playing field for all retailers in the eco-system.
The Federation of Retailer Association of India (FRAI), had recently highlighted the urgent need for enhanced technology support from the government to enable local Kirana stores compete on equal terms with quick commerce players. The body had emphasised that the rise of e-commerce and quick commerce platforms was putting the very existence of traditional Kirana stores at risk.
A recent FICCI-Deloitte report pointed to the increasing consumer preference for Quick Commerce and how Quick Commerce constituted 35% of online sales for FMCG brands. The ET report citing Datum Intelligence also says that over $ 1 billion of Kirana sales are likely to move to quick commerce.
Read more at: www.retail.economictimes.indiatimes.com
