On Monday, delivery riders from Blinkit, the quick commerce platform owned by Zomato, had a meeting with Dinesh Kumar, Gurugram’s Deputy Labour Commissioner. During the meeting, the riders demanded various improvements, including a minimum pay of INR 25 for each order delivered, restoration of previous incentives, and better working hours. These riders have been on strike since the previous week.
Blinkit, a startup, has recently rolled out a new pay structure for its delivery riders in Delhi-NCR, where their payout will now be based on the distance travelled instead of a fixed amount. This move has led to hundreds of Blinkit riders going on strike, resulting in a disruption of services provided by the quick-commerce platform. Nearly 100 dark stores of the platform have been shut down in the region due to the strike.
During the meeting between the Labour Commissioner and the representatives of Blinkit’s driver partners, the management representatives were also present. The Labour Commissioner instructed the delivery executives’ representatives to prepare a list of their demands in writing and have it signed by the present delivery executives outside the office.
Blinkit Vs Driver Partners: The Issue
Blinkit has introduced a new pay structure for its delivery riders where they will be paid INR 12 per kilometre for delivering an order. This change has caused anger and frustration among the delivery drivers. The new pay structure also includes reduced pay rates for less busy hours, such as 11 AM to 7 PM, during which drivers will receive only INR 9 per kilometre.
The delivery partners have demanded a minimum pay of INR 25 for the first kilometre travelled, while the subsequent distance can be paid for according to the new pay structure.
The drivers argue that under the new pay structure, if a delivery partner completes two orders within an hour, travelling two kilometres each way, they would receive only INR 60 per hour, including incentives, which they consider unsustainable. As a result, the drivers are demanding a revised pay scale that would result in a payout of INR 100 per hour.
Previously, a group of approximately 380 drivers who were the first Blinkit delivery drivers in the Gurugram region were paid INR 50 per order. In contrast, the later joiners, comprising around 2,500 to 3,000 delivery partners, were compensated INR 25 per order.
The new pay regime has caused a significant disagreement, particularly for the early adopters who will experience a significant reduction in their earnings. This is because, under the new system, everyone, including the early joiners who were previously paid INR 50 per order, will receive the same amount.
There is a list of five demands presented by the drivers:
- The company should increase the minimum pay to INR 25
- The riders don’t want any changes to the pay scale. The company may increase the pay but should not decrease it
- The company will not terminate access for a rider even if they are unable to log in for 20 days and will inform the rider before doing so
- The company will revert to giving payment from cash on delivery orders to SM (store manager) so that the drivers can work easily
- The company should arrange for water and toilets for the drivers
The drivers have submitted these demands, and the letter has been signed by hundreds of them, to the Gurugram Labour Commissioner.
Several riders have reported that the disruption has caused delays in their payments. As most of them live from paycheck to paycheck, managing their expenses has become challenging.
Moreover, the drivers have raised concerns about the difference between the delivery distance displayed on Blinkit’s app and the actual distance covered while completing an order.
According to a complaint filed by one of the drivers, Blinkit has reportedly terminated a few drivers who participated in the strike last week. These drivers were fired on April 15 and 16. Furthermore, the quick-commerce app has purportedly suspended the driver IDs of several other drivers who took part in the strike.
Industry bodies have strongly criticized Blinkit’s actions. The Indian Federation of App-Based Transport Workers (IFAT) has urged the quick-commerce startup to reconsider its stance on the issue.