The ongoing protests at Blinkit, a quick-commerce platform owned by Zomato, have given its competitors an opportunity to report significant order volume surges. Delivery executives at Blinkit have been protesting against a new pay-out structure that calculates payouts based on distance traveled, rather than a fixed amount. This has led to a significant decrease in their earnings. The protests have also caused issues with Blinkit’s dark stores, leading to the shutting down of around half of its 200 dark stores due to the strike.
Rivals including BigBasket grocery app, Zepto, and Instamart have reportedly witnessed a surge in daily orders in Delhi NCR after Blinkit’s delivery executives went on strike over the new pay structure. Executives from these platforms have confirmed a surge in daily orders on their platforms, with increases ranging from 25% to 50%.
Order Surges for Rival Platforms
BigBasket’s CEO, Hari Menon, confirmed that daily orders at BB Now, the company’s quick-commerce vertical, rose by 46% in Delhi and 61% in Gurgaon and Noida on April 13 and 14, compared to the same period last month. At the same time, Zepto reportedly saw a 40% increase in orders, while Swiggy’s daily orders at Instamart rose by over 25%. Zepto has even hired more than 500 delivery workers in Delhi-NCR to handle the surge in demand.
Blinkit Struggles with Pay-out Structure Strikes
The pay-out structure protests have become a significant issue for the Blinkit grocery app, causing the shutting down of about half of its 200 dark stores due to the strike. Blinkit recently informed it’s protesting delivery executives that it would shut down some of its dark stores in Gurgaon and Delhi in response to the pay-out structure concerns. However, the pay-out structure rollback remains the primary demand of the striking delivery executives who claim it has reduced their earnings.
Unlike gig workers in food delivery platforms, riders associated with quick commerce platforms are tied to specific dark stores. Therefore, with Blinkit shutting down some of its dark stores permanently in the aftermath of the strike, many delivery executives have seen their driver IDs suspended.
The Strike Continues
More than 1,000 delivery drivers, nearly a third of Blinkit’s delivery personnel, remained on strike on Tuesday, according to Mint. Representatives from the delivery drivers met with the Deputy Labour Commissioner Gurugram on Monday, submitting a list of five demands around better pay and social security. Inc42 reported that the Zomato-owned platform had allegedly fired and suspended some delivery executives during the protests, though Blinkit has yet to comment on the matter.
Impact on Revenue
According to ICICI Securities, the strike is likely to have already resulted in around a 1% revenue loss in the first quarter of FY24 for Blinkit. The ongoing strike is also impacting the delivery of orders and causing delays for customers.
The protests at Blinkit have had a significant impact on the company, causing issues with dark stores and a decrease in revenue. Meanwhile, competitors have experienced a surge in daily orders, thanks to the strike. As the strike continues, it remains to be seen how Blinkit will respond and whether it will address the delivery executives’ demands.