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Fast-Delivery Giants Zomato, Swiggy, Zepto Face Antitrust Case in India Over Discounting Practices

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An antitrust case has been filed against fast-delivery companies Zomato, Swiggy, and Zepto by Indian consumer product distributors, urging the Competition Commission of India (CCI) to investigate alleged predatory discounting practices. The All India Consumer Products Distributors Federation (AICPDF) claims that the deep discounts offered by these quick-commerce platforms are creating unfair pricing models that harm smaller retailers.

The rise of quick commerce—where consumer products are delivered within 10 minutes from local warehouses—has gained popularity among customers but sparked concern among small businesses. The sector, expected to reach $35 billion by 2030, has drawn intense scrutiny, as previous investigations found that e-commerce giants like Amazon and Flipkart had engaged in predatory pricing, benefiting select sellers at the expense of smaller competitors.

The AICPDF, with 400,000 distributor members across India, argues that local brick-and-mortar stores cannot compete with the aggressive pricing strategies of Zomato’s Blinkit, Swiggy’s Instamart, and Zepto, platforms that offer discounts on everyday products such as milk and pulses. Their complaint highlights the negative impact these practices have on independent retailers, particularly smaller stores, which cannot afford to match the prices offered by these larger players.

According to the filing, a variant of Nestle’s Nescafé coffee jar, typically priced at 622 rupees ($7.14) for small retailers, is being sold for as low as 514 rupees on Zepto, 577 rupees on Swiggy Instamart, and 625 rupees on Blinkit, further underscoring the disparity between online and offline prices.

While Zomato, Swiggy, and Zepto have not responded to requests for comment, the filing could add pressure on these companies, which are already under investigation for competition law violations in their food delivery businesses. Zepto, which raised funds last year at a $5 billion valuation, is also preparing for an IPO.

The CCI will review the filing and determine if further investigation is warranted, which could take several months. If the case is found to have merit, it could require these companies to justify their discounting strategies. If dismissed, the case will be closed.

Siemens Investor Deka to Vote Against Jim Hagemann Snabe’s Reelection as Chairman

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Deka Investment, a shareholder of Siemens, has announced it will vote against the reelection of Jim Hagemann Snabe as chairman at the German engineering company’s upcoming shareholder meeting on Thursday. Snabe, who has served on Siemens’ supervisory board since 2013 and as chairman since 2018, is seeking an additional two-year term.

Deka, which owns 0.79% of Siemens and is the 11th largest investor in the company, raised concerns about Snabe’s continued leadership. Ingo Speich, head of sustainability and corporate governance at Deka, stated that Snabe’s decade-long tenure means he no longer meets the company’s criteria for independence. The fund manager’s objections were first revealed in an interview with The Market, a German news portal.

Snabe, who previously served as CEO of SAP, had stated in December 2024 that he intended to stay on as chairman for two more years to oversee his succession. Former Nestlé and Fresenius CEO Mark Schneider has been suggested as a potential successor and is up for election to Siemens’ board on Thursday.

Despite Deka’s opposition, Snabe remarked that his discussions with investors and proxy advisers had yielded positive feedback, and he had not encountered any significant opposition to his proposed extension.

Nestle Introduces Protein Shots to Target Weight-Loss Drug Users in the U.S.

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Nestle (NESN.S), the world’s largest food company, has launched a new product in the United States aimed at weight-loss drug users: Boost Pre-Meal Hunger Support, a protein shot designed to suppress appetite. This move marks another step in the company’s strategy to capitalize on the growing demand for weight-loss solutions.

About the Product

The Boost Pre-Meal Hunger Support shots are intended to be consumed 30 minutes before a meal. Nestle claims the drink promotes a natural GLP-1 hormone response, mimicking but on a smaller scale the appetite-suppressing effects of weight-loss drugs like Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound. These popular medications, administered via weekly injections, are known for reducing hunger and inducing feelings of fullness.

Priced at $10.99 for a pack of four, the shots contain:

  • 10 grams of whey protein
  • 45 calories
  • 1 gram of sugar
  • Zero fat

The shots are currently available on Amazon.com and in select CVS stores.

Mechanism and Claims

Nestle’s Chief Technology Officer, Stefan Palzer, explains that the protein shot’s formula includes a patented mix of peptides designed to trigger a natural GLP-1 response in the body. The product is based on whey protein micro-gels, which digest more slowly and interact longer with intestinal receptors to release the GLP-1 hormone.

This is not intended to replace weight-loss drugs but may complement their effects or help individuals maintain weight loss, Palzer said. Nestle has also patented the product’s formula to protect its unique mix of peptides and micro-gel technology.

The Science Behind It

Nestle conducted a study in 2021 involving 26 participants with type-2 diabetes, comparing the effects of whey protein microgel against a placebo. Results showed:

  • 22% reduction in glucose levels two hours after a meal in the whey protein group.
  • A positive effect on GLP-1 hormone levels.

While these findings suggest potential benefits, experts remain cautious. Dr. Lora Heisler, a nutrition researcher at the Rowett Institute, stated that while the product may boost GLP-1 levels, the effects might be comparable to consuming a glass of milk, questioning its long-term impact on weight loss.

Nestle’s Broader Strategy

The protein shots are part of a broader push by Nestle to cater to the booming obesity treatment market, which analysts project could reach $150 billion annually within a decade. Earlier this year, the company introduced protein-enriched frozen pizzas and pastas in the U.S., designed for people taking weight-loss drugs.

Nestle’s move comes amid significant shifts in consumer habits driven by the increasing popularity of weight-loss medications. In 2022, Walmart reported a slight decline in food consumption among customers using these drugs, triggering a market-wide selloff in food company shares, including Nestle’s.

Appetite for Weight-Loss Products

Nestle’s new product seeks to tap into the growing market for alternatives to injectables. While the shots offer a less powerful solution compared to medications like Wegovy or Zepbound, they provide a convenient, non-prescription option for individuals looking to manage their weight.

The protein shots also highlight Nestle’s ambition to innovate within the weight-loss segment, focusing on products that align with shifting consumer needs and health trends.