Zomato's Blinkit Says Strikes To Not Have Material Impact On Revenues
Blinkit has moved from a fixed model of Rs 25 per delivery to a hybrid pricing structure of Rs 15 per delivery, plus incentives.
Blinkit, in its first public acknowledgement, said the strikes by its delivery executives will not have a "material impact" on its financial performance.
"Over the last few days, we have made changes in the delivery partner payout structure with respect to the Blinkit business," it said, adding that the changes were made to "address the needs of delivery partners, improve customer experience, and reduce cancellation and order rejection frauds by a few delivery partners in the system."
Zomato's quick commerce arm has said it "had to shut down some stores for a few days to ensure the safety of our employees at stores and the delivery partners" and that most of these stores have now resumed operations. BQ Prime reported the same yesterday.
Zomato said these disruptions and changes have no material impact on the operations and financial performance, which means that the hit on revenues would be less than 1%, the company said in its filing to the exchanges.
Blinkit has moved from a fixed-fee model of Rs 25 per delivery to a hybrid pricing structure of Rs 15 per delivery, plus added incentives based on distance travelled. This had led to delivery executives deeming a significant cut to their earnings potential and the strikes.
However, the strikes died down yesterday as riders returned to work at the lower base pay after the protests didn't bear any fruit.