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Blinkit says 70% of its delivery partners have opted for new payout structure

Blinkit

Blinkit Delivery partners opted for new payout structure

Blinkit, a Zomato-owned quick-commerce site, cleared the air on Wednesday about its 50 dark storefronts being closed in Delhi-NCR due to wage protests by its delivery partners. Blinkit said on Wednesday that 70% of its delivery partners have chosen the new payment system.

“All of our stores are now open for business.” Over 70% of our delivery partners have also opted in to the new payout system, with no loss of profits, and are still delivering on the platform. We are now seeing more demand than supply, and some customers will have longer than projected wait periods in the coming days,” stated a Blinkit spokeswoman.

Zomato Ltd also announced on Wednesday that most Blinkit outlets have reopened after being closed due to pay protests, pushing its shares up as much as 5%.

According to a regulatory filing, the interruptions had a little than 1% impact on Zomato’s revenue. In the third quarter, Blinkit, which Zomato purchased last year for $550 million, accounted for 12.7% of Zomato’s overall sales.

Blinkit

Zomato claimed it has shut down some locations for a few days to guarantee the safety of its staff and delivery partners after modifications to the compensation structure of Blinkit delivery partners.

Blinkit has over 400 locations in India, 50 of which were closed on Friday, largely in and around New Delhi, as staff campaigned for higher compensation.

Zomato stated on Wednesday that the payment modifications were made to “address the needs of delivery partners, improve customer experience, and reduce cancellation/order rejection frauds by a few delivery partners in the system.”

In India’s fast-growing grocery industry, Blinkit competes with other large delivery companies such as top retailer Reliance-backed Dunzo, Tata’s BigBasket, and SoftBank-backed Swiggy.