As competition heats up in the quick commerce sector and the fight for talent becomes increasingly fierce, Zomato-owned Blinkit has reportedly updated its employment contract.
According͏͏ to͏͏ Moneycontrol,͏͏ the͏͏ company͏͏ has͏͏ asked͏͏ several͏͏ employees,͏͏ especially͏͏ those͏͏ in͏͏ senior͏͏ roles,͏͏ to͏͏ sign͏͏ an͏͏ addendum͏͏ to͏͏ their͏͏ contracts,͏͏ increasing͏͏ their͏͏ notice͏͏ period͏͏ from͏͏ zero͏͏ to͏͏ two͏͏ months.
The͏͏ report͏͏ quoted͏͏ a͏͏ source͏͏ stating,͏͏ “Blinkit’s͏͏ move͏͏ is͏͏ both͏͏ pre-emptive͏͏ and͏͏ a͏͏ response͏͏ to͏͏ current͏͏ developments.͏͏ A͏͏ well-funded͏͏ competitor͏͏ like͏͏ Zepto͏͏ or͏͏ a͏͏ major͏͏ rival͏͏ like͏͏ Flipkart͏͏ could͏͏ make͏͏ attractive͏͏ offers͏͏ and͏͏ easily͏͏ lure͏͏ talent͏͏ away͏͏ from͏͏ Blinkit.͏͏ Many͏͏ companies͏͏ are͏͏ doing͏͏ this,͏͏ and͏͏ Blinkit͏͏ is͏͏ implementing͏͏ measures͏͏ to͏͏ prevent͏͏ talent͏͏ loss.”
Quick Commerce Landscape͏͏ Heats͏͏ Up:
The͏͏ decision͏͏ to͏͏ extend͏͏ the͏͏ notice͏͏ period͏͏ for͏͏ Blinkit͏͏ employees͏͏ comes͏͏ as͏͏ competition͏͏ in͏͏ the͏͏ quick͏͏ commerce͏͏ sector͏͏ intensifies.͏͏ Media͏͏ reports͏͏ indicate͏͏ that͏͏ Zomato,͏͏ the͏͏ parent͏͏ company͏͏ of͏͏ Blinkit,͏͏ implemented͏͏ this͏͏ policy͏͏ in͏͏ July.͏͏ Since͏͏ then,͏͏ Zepto͏͏ has͏͏ secured͏͏ $340͏͏ million͏͏ in͏͏ funding,͏͏ Walmart͏͏ has͏͏ launched͏͏ and͏͏ expanded͏͏ Flipkart͏͏ Minutes͏͏ across͏͏ several͏͏ Indian͏͏ cities,͏͏ and͏͏ Swiggy͏͏ has͏͏ received͏͏ approval͏͏ for͏͏ its͏͏ IPO,͏͏ which͏͏ is͏͏ one͏͏ of͏͏ the͏͏ largest͏͏ for͏͏ a͏͏ new-age͏͏ company͏͏ in͏͏ recent͏͏ years.
“In͏͏ instances͏͏ where͏͏ Blinkit͏͏ is͏͏ certain͏͏ that͏͏ an͏͏ employee͏͏ is͏͏ joining͏͏ a͏͏ direct͏͏ competitor,͏͏ the͏͏ employee͏͏ is͏͏ now͏͏ placed͏͏ on͏͏ a͏͏ two-month͏͏ garden͏͏ leave͏͏ or͏͏ relieved͏͏ immediately͏͏ to͏͏ prevent͏͏ sensitive͏͏ information͏͏ from͏͏ being͏͏ leaked͏͏ to͏͏ others,”͏͏ another͏͏ source͏͏ informed͏͏ Moneycontrol.
Continue͏͏ Exploring:͏͏ Blinkit best͏͏ positioned͏͏ to͏͏ benefit͏͏ from͏͏ quick commerce growth;͏͏ Zomato͏͏ PT͏͏ raised͏͏ to͏͏ INR͏͏ 353:͏͏ CLSA
It͏͏ is͏͏ important͏͏ to͏͏ highlight͏͏ that,͏͏ over͏͏ the͏͏ past͏͏ six͏͏ months,͏͏ quick͏͏ commerce͏͏ players͏͏ have͏͏ expanded͏͏ their͏͏ operations͏͏ and͏͏ diversified͏͏ their͏͏ catalogues͏͏ to͏͏ meet͏͏ increasing͏͏ consumer͏͏ demand.͏͏ Nearly͏͏ all͏͏ platforms,͏͏ including͏͏ Swiggy͏͏ Instamart͏͏ and͏͏ the͏͏ new͏͏ Flipkart͏͏ Minutes,͏͏ have͏͏ ventured͏͏ into͏͏ categories͏͏ such͏͏ as͏͏ electronics,͏͏ beauty,͏͏ pet͏͏ care,͏͏ toys,͏͏ and͏͏ smaller͏͏ household͏͏ appliances.
In͏͏ Blinkit’s͏͏ case,͏͏ the͏͏ additions͏͏ led͏͏ to͏͏ a͏͏ 130%͏͏ surge͏͏ in͏͏ gross͏͏ order͏͏ value͏͏ (GOV),͏͏ reaching͏͏ INR͏͏ 4,923͏͏ crore͏͏ in͏͏ Q1͏͏ FY25,͏͏ up͏͏ from͏͏ INR͏͏ 2,140͏͏ crore͏͏ in͏͏ the͏͏ same͏͏ quarter͏͏ last͏͏ year.͏͏ Sequentially,͏͏ this͏͏ represents͏͏ a͏͏ 22.2%͏͏ increase͏͏ from͏͏ INR͏͏ 4,027͏͏ crore͏͏ in͏͏ Q4͏͏ FY24.
Continue͏͏ Exploring:͏͏ Blinkit sees͏͏ 22%͏͏ QoQ͏͏ revenue͏͏ growth͏͏ to͏͏ INR͏͏ 942͏͏ Cr͏͏ in͏͏ Q1,͏͏ adjusted͏͏ EBITDA͏͏ loss͏͏ drops͏͏ to͏͏ INR͏͏ 3͏͏ Cr
Currently,͏͏ Blinkit͏͏ operates͏͏ 639͏͏ dark͏͏ stores͏͏ nationwide,͏͏ with͏͏ the͏͏ average͏͏ daily͏͏ gross͏͏ order͏͏ value͏͏ (GOV)͏͏ per͏͏ store͏͏ increasing͏͏ to͏͏ INR͏͏ 10͏͏ lakh,͏͏ up͏͏ from͏͏ INR͏͏ 6͏͏ lakh͏͏ across͏͏ 383͏͏ stores͏͏ previously.͏͏ The͏͏ company͏͏ aims͏͏ to͏͏ expand͏͏ its͏͏ dark͏͏ store͏͏ count͏͏ to͏͏ 2,000͏͏ by͏͏ the͏͏ end͏͏ of͏͏ 2026͏͏ while͏͏ ensuring͏͏ profitability.
Future͏͏ Projections͏͏ for͏͏ Quick Commerce:
According͏͏ to͏͏ analysis͏͏ by͏͏ brokerage͏͏ CLSA,͏͏ the͏͏ gross͏͏ order͏͏ value͏͏ of͏͏ major͏͏ quick͏͏ commerce͏͏ players͏͏ such͏͏ as͏͏ Blinkit,͏͏ Zepto,͏͏ and͏͏ Swiggy͏͏ Instamart͏͏ is͏͏ projected͏͏ to͏͏ reach͏͏ $10͏͏ billion͏͏ by͏͏ the͏͏ financial͏͏ year͏͏ 2025-26͏͏ (FY26),͏͏ driven͏͏ by͏͏ their͏͏ expansion͏͏ beyond͏͏ groceries͏͏ and͏͏ into͏͏ Tier͏͏ 2͏͏ and͏͏ Tier͏͏ 3͏͏ markets.
