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Why Did Blinkit Shut Down Dark Stores in Delhi-NCR?

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Sparsh Goel
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Blinkit

Blinkit: Blinkit, a quick-commerce site owned by Zomato, has closed roughly 100 dark businesses in Delhi-NCR. A dark store is essentially a retail establishment that resembles a typical retail store in terms of operation and design but is not accessible to the general public for browsing and shopping. It serves as a facility for fulfilling internet orders instead.

Blinkit has decreased the payout for deliveries

Over the previous few days, Blinkit executives have been criticising the payments they receive for deliveries. This came after the corporation abruptly cut the payment from Rs. 25–30 to Rs. 15–10. It should be noted that this is not the first time that Blinkit has decreased the payout for deliveries; previously, it was decreased from Rs 50 to Rs 25 every delivery. In a meeting with the Gurugram labour commissioner today, hundreds of Blinkit delivery employees urged that the minimum payment per delivery be reinstated to at least Rs 25.

Blinkit's services were not available

Many areas of Delhi-NCR, including Delhi, Gurugram, Faridabad, Ghaziabad, Noida, and Greater Noida, are without Blinkit services due to the outage. Customers in these areas can access the Blinkit app and get the notice "temporarily unavailable." But it appears that the pay problem is being fixed, and delivery services are progressively becoming more available. For over a week, Blinkit's services were not available. According to sources, Blinkit's competitors Swiggy Instamart, Zepto, Dunzo, and BigBasket benefited from the disruption by seeing greater order volumes.

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Payouts to delivery partners have increasingly decreased

Past instances of these strikes have affected the operations of major meal delivery services like Zomato and Swiggy. Payouts to delivery partners have increasingly decreased over the years as incentives have been reduced to maximise profits due to growing competition in the online meal delivery market. Therefore, as more businesses adopt drastic means to increase revenue and profitability, what happened in the online food delivery industry a few years ago is repeating itself in the rapid commerce arena. After Covid, the rapid commerce sector in India had a boom, but the firms involved in the play failed to satisfy high volume demands and were compelled to hire many executives at low salaries.

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Noida Ghaziabad Delhi-NCR Blinkit
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