‘No material impact’ on Zomato’s financial performance despite Blinkit workers strike, says company

The Indian Express had earlier reported on the strikes that lasted for close to a week, with workers saying that Blinkit’s new payout structure will halve their monthly earnings.

Blinkit and Zomato logos are seen in this illustration taken June 27, 2022. (REUTERS//Illustration/File Photo)

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Disruptions caused to quick commerce firm Blinkit due to worker strikes have had “no material impact” on Zomato’s financial performance and have resulted in a “less than 1% revenue impact,” the food delivery company informed stock exchanges on Wednesday.

“Over the last few days we have made changes in the delivery partner payout structure with respect to the Blinkit business to address the needs of delivery partners, improve customer experience and reduce cancellation/ order rejection frauds by few delivery partners in the system. Such changes are done from time to time, as needed,” the company said in a regulatory filing.

Also Read | Anatomy of a strike: In workers’ protest against Zomato-owned Blinkit, a new flashpoint in gig work’s dismal reality

Zomato, which owns Blinkit, said that it had to “shut down some stores for a few days to ensure safety of our employees at stores and the delivery partners,” and that most of these stores have now resumed operations. However, it is worth noting that Blinkit has permanently shuttered some of its dark stores in Gurugram owing to the strikes.

In a research note on Monday, ICICI Securities had said that Zomato has already lost approximately 1% in revenue from its grocery delivery business Blinkit and around 0.15% of consolidated revenue for the first quarter (Q1) of FY24.

At the heart of the strikes is a change in the way Blinkit compensates its delivery workers. Protesting workers said that they had joined Blinkit last year when the fee was Rs 50 per order, but last year, it was reduced to Rs 25 per order, and has now been reduced further to Rs 15 with a distance-based fee component being introduced.

According to workers protesting against the company, the strikes are now dying down as the pressure failed to force Blinkit into rolling back its change. A delivery person on the strike said that the firm offered a temporary incentive on top of the new payout structure that led to some of the workers resuming work.

The Indian Express had earlier reported on the strikes that lasted for close to a week, with workers saying that Blinkit’s new payout structure will halve their monthly earnings.

Soumyarendra Barik

Soumyarendra Barik is a Special Correspondent with The Indian Express, specializing in the complex and evolving intersection of technology, policy, and society. With over five years of newsroom experience, he is a key voice in documenting how digital transformations impact the daily lives of Indian citizens. Expertise & Focus Areas Barik’s reporting delves into the regulatory and human aspects of the tech world. His core areas of focus include: The Gig Economy: He extensively covers the rights and working conditions of gig workers in India. Tech Policy & Regulation: Analysis of policy interventions that impact Big Tech companies and the broader digital ecosystem. Digital Rights: Reporting on data privacy, internet freedom, and India's prevalent digital divide. Authoritativeness & On-Ground Reporting: Barik is known for his immersive and data-driven approach to journalism. A notable example of his commitment to authentic storytelling involves him tailing a food delivery worker for over 12 hours. This investigative piece quantified the meager earnings and physical toll involved in the profession, providing a verified, ground-level perspective often missing in tech reporting. Personal Interests Outside of the newsroom, Soumyarendra is a self-confessed nerd about horology (watches), follows Formula 1 racing closely, and is an avid football fan. Find all stories by Soumyarendra Barik here. ... Read More