Recently, 1000 delivery executives previously employed by Blinkit, a popular food delivery service, have left to join competitors such as Swiggy and Zepto, causing a significant shakeup in the online food delivery industry.
Over 1,000 delivery executives from Blinkit, which is owned by Zomato’s quick-commerce unit, have switched to rival platforms such as Swiggy Instamart, Zepto, and BB Now after changes were made to the payout structure.
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What were the causes of this revolt?
Blinkit recently revealed that they will be offering a minimum payment of Rs 15 ($0.20) per trip, which will vary based on the distance traveled.
The company has made a change in its delivery pricing. Previously, they offered a fixed rate of Rs 25 for each delivery, along with peak-hour incentives of Rs 7 per trip. This has now been modified, which means that delivery workers are concerned that their earnings will be impacted.
The strike caused the temporary closure of several dark stores or micro-warehouses in Delhi, Gurgaon, Noida, Faridabad, and Ghaziabad.
The company has restarted its operations while the ongoing protest continues!
Although the company has resumed operations, several stores located in Delhi and Gurgaon continue to remain shut due to a shortage of available delivery staff. Sources suggest that approximately one-third of Blinkit’s delivery staff, which amounts to almost 1,000 individuals, have left the platform to work for competing companies.
A delivery executive named Mohammed Zakir from East Delhi confirmed that he has started working with Zepto. Additionally, the ongoing protest at Blinkit has resulted in increased delivery orders for competitors such as BigBasket, Zepto, and Swiggy Instamart. Their daily orders have increased by 25% to 50%, according to their report.
There are special incentives available!
Last week, Blinkit distributed a rate card to select stores in Delhi and Noida. The special incentives mentioned in the rate card were valid for 10 days and offered delivery executives earnings between Rs 700 and Rs 1,200 for achieving specific order milestones.
Although Blinkit made efforts, the company deregistered several riders during the same week. The delivery executives in Gurgaon and Delhi received a message from the Blinkit delivery partner app stating that some stores were closed due to a lack of work in the last three to four days.
Additionally, the messages mentioned that the platform ended the registration of delivery executives.
On April 20th, Zomato let the stock exchanges know that the current quarter’s revenue impact on the quick-commerce unit caused by the Blinkit disruption was less than 1%. They also said –
“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”.
Experts think that it is too soon to predict the outcome, but they believe that this uprising could have a considerable impact on the food delivery sector. Only time will tell!