Changed payout structure to address needs of delivery partners: Zomato on Blinkit’s unavailability

Deepinder Goyal-led Zomato that owns online grocery platform Blinkit has responded to reports of its unavailability in certain parts of the country. Zomato said that it changed the delivery partner payout structure in Blinkit to meet the needs of the delivery partners.

This clarification came after reports of glitches in Blinkit services in certain parts of Delhi-NCR region. Delivery partners of Blinkit went on a strike, demanding the reinstatement of the previous payment system, leading to the closure of around 50 stores in Zomato’s grocery unit in various parts of Delhi-NCR.

“Over the last few days we have made changes in the delivery partner payout structure with respect to the Blinkit business to address the needs of delivery partners, improve customer experience and reduce cancellation/ order rejection frauds by few delivery partners in the system. Such changes are done from time to time, as needed,” said Zomato in a filing.

It added that it had to “shut down some stores for a few days to ensure safety of our employees at stores and the delivery partners”. Zomato, however, added that most of these stores have now resumed operations.

The food delivery platform said that the eventual disruptions and changes have no material impact on the operations and financial performance of the company – meaningfully less than 1 per cent revenue impact.

Reports stated that Blinkit delivery partners were protesting against the new payout structure that reduced the minimum fee per delivery from Rs 25 to Rs 15. BJP leader Kapil Mishra lashed out at the company and tweeted, “Some Blinkit employees came and met me. The injustice Blinkit is doing to its employees is illegal. Management is playing with the lives of lakhs of families. Blinkit management must implement old payment immediately. Reduction from Rs 25 per delivery to Rs 10-15 is cheating the employees.”

Many Blinkit customers were greeted by a message when they tried to order groceries: "Due to excess demand, temporarily unavailable".

Also read: 50 Blinkit dark stores shut in Delhi-NCR amid protests by delivery workers over wages