Blinkit is back in action and resumes services in parts of Delhi NCR

Blinkit is making headlines from the last week after its services disrupted by the strike by its delivery partners. Now after 5 days, Blinkit stores have resumed operations in some parts of Delhi NCR on Monday (April 17). Blinkit has paused their services on Friday as it has been facing protests from its delivery executives in Delhi-NCR.

The delivery partners met the labour commissioner of Gurugram to discuss the issues related to the company’s decision to lower wages. According to BJP leader Yashpal Batra, the Labour Commissioner has directed executives of Blinkit to address the issues of its delivery partners who have been striking against the lowering of fees by the Zomato-owned company.

Reportedly, last week around 100 dark stores operated by Blinkit in the Delhi-National Capital Region were shut down due to the delivery executives going on a strike protesting the change in the company’s payout structure.

According to a spokesperson of Zomato, almost all the stores across NCR are operational now. Blinkt will continue to engage with all delivery partners to help them understand the new payout structure. This disruption came to Blinkit's operations in the Delhi NCR region due to delivery partners protesting over a new pay structure.

Zomato has recently stated that the disruptions and changes they have experienced will not have a significant impact on their operations and financial performance, and that the hit on revenues would be less than 1%.

ICICI Securities' analysis on Zomato

The ongoing strike by Blinkit delivery executives has resulted in a loss of at least 3-4 days' sales, which implies about a 1% loss in revenue from Blinkit and about 0.15% of consolidated revenue for Q1FY24 already. The report also suggests that the change in delivery fee payment structure at Blinkit indicates Zomato's efforts to cut costs, according to ICICI Securities report.