Blinkit, formerly known as Grofers, has been in the news recently due to protests by its delivery partners across several regions in the National Capital Region (NCR) of India. The delivery partners are protesting against the company's new payout policy, which they claim will halve their income and make their jobs unsustainable.
Under Blinkit's new payment system, delivery partners will receive a minimum of Rs 15 per delivery, instead of the previous Rs 25 per delivery. The reduction in earnings has led to protests and disruptions, with around 50 Blinkit stores closed due to staffing shortages.
The protests highlight a fundamental issue with the economics of fast 10-minute deliveries with low ticket sizes and margins. Ashneer Grover, the CFO who developed Grofers and now Blinkit, has suggested that this is a problem that cannot be solved by simply lowering the delivery cost.
Grover's comments raise important questions about the future of fast delivery apps like Blinkit. Can these apps provide fast delivery at low costs while also providing sustainable earnings for their delivery partners? Or are the economics of such services inherently unsustainable?
Blinkit's journey so far has been unpredictable, with its ups and downs (bull and bear runs). The protests by delivery partners and resulting staffing shortages only add to the uncertainty. It remains to be seen how Blinkit will address the concerns of its delivery partners and customers.
The situation with Blinkit highlights the importance of fair compensation for gig workers, who are often the backbone of these fast delivery apps. While the convenience of fast delivery is appealing, it cannot come at the cost of fair compensation for those who make it possible.
In conclusion, the protests by Blinkit delivery partners raise important questions about the future of fast delivery apps and the economics of low-cost, fast delivery. It remains to be seen how Blinkit will respond to the concerns of its delivery partners and customers, but this situation serves as a reminder of the importance of fair compensation for gig workers.
