Quick commerce company Blinkit has made a significant shift in its employment policies, notably for its key employees, by eliminating its 'zero notice' policy and implementing a new notice period requirement of two months for several top-level staff. This decision, as reported by Moneycontrol, arises from the increasing competition within the quick commerce industry, which is currently valued at an impressive $5.5 billion in India.
As Blinkit navigates this competitive landscape, it is confronted with formidable rivals such as Zepto, Flipkart, and Swiggy, all of which are vying to attract and retain top talent in this rapidly expanding sector. According to insights shared by sources familiar with the situation, the changes are described as a "preventive measure." With competitors like Zepto, which recently secured $340 million in funding, and Flipkart, which has been aggressively expanding its rapid delivery service Flipkart Minutes, Blinkit is under pressure to safeguard its workforce. These competitors can offer lucrative deals that make it easy for Blinkit employees to switch allegiance.
In addition to extending the notice period, Blinkit has also introduced a practice of placing employees on “garden leave” for two months when it suspects they may be transitioning to a direct competitor. This tactic aims to mitigate the risk of sensitive company information being shared with rival firms. In certain cases, employees may be relieved of their duties immediately to further reduce any potential data leakage, demonstrating the company’s commitment to protecting its proprietary information and business strategies.
While Blinkit is the first major player in the quick commerce space to implement such changes to its employment contracts shortly after introducing the zero notice policy in July, the practice of poaching talent remains prevalent in the industry. The quick commerce sector is still in its nascent stages and is expanding rapidly, creating ample opportunities for talent acquisition and recruitment from rival companies.
The intensified competition has spurred significant investment and growth across the industry, reflecting a broader trend in the Indian market. Walmart’s Flipkart, having expanded its delivery services beyond Bengaluru to multiple cities, and Swiggy, which has secured approval for its Initial Public Offering (IPO), are indicative of the aggressive strategies being employed to capture market share and enhance operational capabilities.
As the quick commerce landscape continues to evolve, Blinkit’s recent policy changes underscore the ongoing battle for talent among key players in the industry. By adjusting its employment terms and taking proactive steps to protect its workforce, Blinkit is positioning itself to navigate the challenges of a competitive environment while striving to maintain its edge in this fast-paced market.
