Delivery partners of Zomato-owned platform Blinkit in Delhi-NCR went on strike protesting against reduced income due to a new payout structure.
What happened: Hundreds of delivery partners working with Zomato-owned quick commerce platform Blinkit in Delhi-NCR went on strike on Wednesday, protesting against a renewed fee structure that they say will reduce their income, disrupting services at some locations. The company has implemented a new payout structure that compensates riders based on their effort to deliver an order, and it is being rolled out in stages.
Why it matters: Zomato-owned Blinkit is a significant player in India's quick commerce market, where customers can get products delivered within minutes.
If the strike continues and services remain disrupted, it could impact the company's reputation and revenue.
Also, this is the latest in a series of protests by delivery workers post Covid-19, highlighting the poor compensation and lack of social security net in the industry.
The big picture: The pandemic has led to a surge in demand for food and grocery delivery services in India. As a result, the gig economy has grown, and delivery workers have become an essential part of the ecosystem. However, the workers have been fighting for better pay, benefits, and job security for some time now.
Between the lines: The new rate structure could benefit Blinkit's profit margins, but it may not be sustainable in the long run if it leads to discontent among its delivery partners. Also, as competition in the quick commerce market intensifies, maintaining a robust partner ecosystem will be critical for the success of Blinkit.
Flashback: Zomato acquired the logistics start-up Runnr in 2017 and rebranded it as Blinkit in 2020. The company has been aggressively expanding its quick commerce services, aiming to deliver products within 15-30 minutes.
By the numbers: Delivery partners will now be paid a minimum fee of Rs 15 per delivery, down from Rs 25 earlier. Also, riders will be paid a per km fee depending on which time of the day the delivery is being made.
For example in some stores in South Delhi, where the new system has been implemented, delivery workers will be paid in the range of Rs 10-14 per km.
What they're saying: A Blinkit spokesperson confirmed the new payout structure and called it a positive step for their partner ecosystem. The company's teams are on the ground to answer any questions from the partners, and they are engaging with them to get the stores back up and running for customers.
Catch up quick: Delivery partners working with Zomato-owned quick commerce platform Blinkit in Delhi-NCR went on strike to protest against a renewed fee structure that they say will reduce their income, disrupting services at some locations. The new payout structure compensates riders based on their effort to deliver an order, and it is being rolled out in stages. This is the latest in a series of protests by delivery workers post Covid-19, highlighting the poor compensation and lack of social security net in the industry.
