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Zomato has issued a clarification to Bombay Stock Exchange (BSE) on the recent protest by its delivery staff. The protests resulted in disruption at quick-commerce company’s grocery unit Blinkit. Blinkit’s services have been ‘temporarily unavailable’ in several parts of the Delhi-NCR region. The striking workers are reportedly demanding a rollback of the company’s revised payout structure, which they claim is resulting in a reduction in their earnings. Blinkit has changed its payout system from a flat Rs 25 per delivery (plus Rs 7 during peak hours) to a Rs 15 per delivery minimum fee along with a distance-based component.
According to some media reports, Blinkit disabled IDs of some workers after several rounds of talks apparently failed. The company is also reported to have sent messages to some delivery staff informing them of closure of Dark stores in certain areas and disabling of IDs.
Zomato’s clarification
In a clarification given to BSE, Zomato shared three key points where the company mentioned the reason for the strike, why it had to close some stores and the material impact caused by the strike to the company’s business.
1. 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.
2. We had to shut down some stores for a few days to ensure safety of our employees at stores and the delivery partners. Most of these stores have now resumed operations.
3. These disruptions and changes have no material impact on the operations/financial performance of the Company (meaningfully less than 1% revenue impact) and hence we believe that this event does not warrant any disclosure under regulation 30 of the SEBI (LODR) Regulations, 2015.
Research report
Brokerage firm ICICI Securities had earlier said in a research note that Zomato has already lost approximately 1% in revenue from grocery delivery business Blinkit and around 0.15% of consolidated revenue for the first quarter (Q1) of FY23 in the wake of the protests.
According to some media reports, Blinkit disabled IDs of some workers after several rounds of talks apparently failed. The company is also reported to have sent messages to some delivery staff informing them of closure of Dark stores in certain areas and disabling of IDs.
Zomato’s clarification
In a clarification given to BSE, Zomato shared three key points where the company mentioned the reason for the strike, why it had to close some stores and the material impact caused by the strike to the company’s business.
1. 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.
2. We had to shut down some stores for a few days to ensure safety of our employees at stores and the delivery partners. Most of these stores have now resumed operations.
3. These disruptions and changes have no material impact on the operations/financial performance of the Company (meaningfully less than 1% revenue impact) and hence we believe that this event does not warrant any disclosure under regulation 30 of the SEBI (LODR) Regulations, 2015.
Research report
Brokerage firm ICICI Securities had earlier said in a research note that Zomato has already lost approximately 1% in revenue from grocery delivery business Blinkit and around 0.15% of consolidated revenue for the first quarter (Q1) of FY23 in the wake of the protests.
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