Yazılar

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

/in /tarafından

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.

AI-Driven Shopping Boosts Online Holiday Sales, Salesforce Data Shows

/in /tarafından

AI-powered chatbots and other digital tools significantly contributed to a nearly 4% year-over-year increase in U.S. online sales during the 2024 holiday season, according to Salesforce data. Retailers harnessed AI-driven customer service features such as conversational chatbots, targeted promotions, and personalized product recommendations to attract shoppers seeking trending products and the best deals.

From November 1 to December 31, U.S. online sales reached $282 billion, up from $272 billion in 2023, surpassing Salesforce’s initial 2% growth forecast, despite more restrained discounts. AI-based chatbots saw a 42% increase in usage compared to the previous year, with Salesforce analyzing data from 1.6 trillion page views to reach this conclusion.

Globally, AI-driven sales grew to $229 billion, compared to $199 billion in 2023. While AI was a major growth driver, a concerning 28% product return rate, up from 20% in 2023, was highlighted as a potential drag on profit margins for retailers, according to Caila Schwartz, director of Consumer Insights at Salesforce.

“Retailers who have embraced AI and agents are already seeing the benefits, but these tools will be even more critical in the new year as retailers aim to minimize revenue losses on returns and re-engage with shoppers,” Schwartz said.

The report also noted that mobile shopping peaked on Christmas Day, with 79% of all orders made through smartphones during the holiday season. Social media platforms like TikTok Shop and Instagram helped drive 14% of all traffic to e-commerce sites.

 

Infosys Raises Annual Revenue Forecast on US Demand Revival

/in /tarafından

Infosys, India’s second-largest software services exporter, has raised its annual revenue forecast for the third time this financial year, driven by a revival in U.S. demand, particularly from banking and retail clients. The company now expects its annual revenue to rise by 4.5% to 5%, an increase from its previous forecast of 3.75% to 4.5%.

This upbeat outlook mirrors the sentiments of other Indian IT giants, including Tata Consultancy Services (TCS) and HCLTech, which have also reported early signs of a recovery in discretionary spending. Infosys’ CEO, Salil Parekh, noted an improvement in the U.S. retail and consumer product industries, as challenges related to discretionary spending ease.

In the third quarter, Infosys posted a 7.6% revenue growth to 417.64 billion rupees ($4.83 billion), exceeding analyst estimates of 412.78 billion rupees. The growth was mainly driven by an uptick in revenue from North American clients, which constitute 60% of the company’s total revenue. This marks a significant recovery, as North American revenue had declined for five consecutive quarters.

Infosys also reported an 11.4% increase in profit for the quarter, reaching 68.06 billion rupees, surpassing analysts’ expectations. The company highlighted that all eight business segments saw higher growth, with the financial services division growing 6.1%. The company secured large orders worth $2.5 billion, reflecting its focus on significant deals and strategic engagements.

Gaurav Parab, an analyst at NelsonHall, noted the positive results, particularly the company’s focus on large deals and the promising developments in Agentic AI, a technology enabling AI-powered agents and bots.