Foodtech

Zomato says Blinkit strike and store closures won’t significantly impact operations and financial performance

• ByStartupStory     |    April 19, 2023

Food delivery company Zomato has stated that the ongoing strike by delivery partners associated with Blinkit and the temporary closure of some stores will not have a significant impact on the company’s operations and financial performance. The clarification was made in an exchange filing to the Bombay Stock Exchange (BSE) on Wednesday. This came after news reports suggested that Blinkit had temporarily closed stores following protests by delivery partners against changes in payout structure.

“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,” Zomato said in the filing.

Blinkit’s delivery partners have been protesting against the company’s updated commissions system in Delhi-NCR for the second-straight week, saying the grocery delivery firm has brought down commissions from Rs 30 to Rs 15. The partners met Gurugram Deputy Labour Commissioner Dinesh Kumar and submitted their demands on Monday. Representatives of Blinkit were also present at the meeting.

However, Zomato has assured its customers that the ongoing strike and the temporary closure of some stores will not affect its services in any significant manner.

Zomato has been in the news recently due to its highly successful IPO, which saw the company raising INR 9,375 crore ($1.3 billion) in July 2021. The company’s co-founder and CEO, Deepinder Goyal, had stated at the time of the IPO that the funds raised would be used to “double down” on Zomato’s growth.

Despite the ongoing strike, Zomato remains optimistic about the future. “We are confident that our delivery partners will be back to serving our customers soon,” the company said in a statement.

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