Union commerce and industry minister Piyush Goyal has said quick commerce players must collaborate with neighbourhood retailers in last-mile delivery if they want to sustain themselves in the long run and avoid losses.

“Our only advice to e-commerce companies is to follow the law of the land,” the minister said.

Goyal’s chilling message to firms such as Zepto, Swiggy Instamart and Blinkit has shone the spotlight on their operations — amid reports the consumer affairs ministry is assessing the impact of their business on the small retailers.

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

He said while the Centre supports technology, the e-commerce companies should also meet with various rules and regulations.

The popularity of quick commerce firms has soared with their ability to deliver various items that include groceries within 10-30 minutes, leveraging their network of ‘dark stores’ that cater only to online orders.

Elara Capital in a report has said the rapid adoption of quick commerce platforms could lead to the closure of 25-30 per cent (30 million) of small stores in the country.

Recently, the All India Consumer Products Distributors Federation (AICPDF) had complained to the commerce and industry ministry about the alleged anti-competitive practices of quick commerce companies. It had also sought an investigation against these firms.

The federation has written to Goyal flagging concerns about the unchecked expansion of these platforms. They had pointed out that these firms are posing significant challenges to the traditional retail sector and the established FMCG distribution network.

A PTI report recently said that the DPIIT, which comes under the commerce and industry ministry, has referred the complaint of alleged unfair business practices to the Competition Commission of India.

The quick commerce market in India is currently valued at around $5 billion.

Analysts at Bernstein said quick commerce has become the dominant growth channel in India, overtaking other channels such as ecommerce, small shops and modern retail.

Praveen Khandelwal, Lok Sabha MP and general secretary of traders’ body CAIT, told The Telegraph “the business methodology of e commerce and quick commerce remains the same, which is to capture the existing trade under the garb of providing facilities”.

“However, the rules and the policies are blatantly violated by these companies thus creating an uneven level of competition.”

“What Piyush Goyal has pointed out is duly correct as quick commerce poses a greater threat to existing retail ecosystem. Let there be a fair competition for every stakeholder.

“Therefore, the rolling out of an e-commerce policy and the rules under Consumer Protection Act assumes much significance.”