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Blinkit's Delivery Workers Join Rivals In Protest Against Payout Change

The protest led to the closure of several dark stores or micro warehouses of Blinkit in Delhi, Gurgaon, Noida, Faridabad and Ghaziabad, while orders for rival quick-commerce firms rose 25-50 per cent

Blinkit's Delivery Workers Join Rivals In Protest Against Payout Change

Outlook Start-Up Desk

POSTED ON April 24, 2023 12:01 PM

Around 1,000 delivery executives for Blinkit, the Zomato-owned quick-commerce unit, have joined rival platforms, including Swiggy Instamart, Zepto and BB Now, after the company changed its payout structure. 

Blinkit had announced earlier this month that it would offer a minimum payment of Rs 15 ($0.20) per trip based on distance, departing from its previous fixed rate of Rs 25 per delivery, as well as peak-hour incentives of Rs 7 per trip. Delivery workers said the move would reduce their earnings. 

The strike led to several dark stores or micro-warehouses, across Delhi, Gurgaon, Noida, Faridabad and Ghaziabad being temporarily closed. Although the company has resumed operations, multiple stores in Delhi and Gurgaon remain closed due to a lack of delivery staff.

Around one-third of the delivery executives for Blinkit or close to 1,000 people, had left the platform to join its rivals, according to an anonymous industry source. A delivery executive from East Delhi, Mohammed Zakir, said he had started working with Zepto. The ongoing protest at Blinkit has led to an increase in delivery orders for rivals BigBasket, Zepto and Swiggy Instamart, with a 25 per cent-50 per cent rise reported in daily orders.

Last week, Blinkit circulated a rate card with special incentives valid for 10 days for some stores in Delhi and Noida, which offered delivery executives earnings of between Rs 700 and Rs 1,200 for fulfilling certain order milestones. However, several Blinkit riders were deregistered by the company the same week. 

Delivery executives in Gurgaon and Delhi said they received a message from the Blinkit delivery partner app informing them that some stores were being closed as there had been no work in the last three to four days. The message stated that the registration of delivery executives with the platform was terminated.

Zomato told the stock exchanges on 20 April that the recent disruption at Blinkit had a revenue impact of less than 1 per cent on the quick-commerce unit during the ongoing quarter. “We had to shut down some stores for a few days to ensure the safety of our employees at stores and the delivery partners. Most of these stores have now resumed operations,” it said.

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