As Competition in Quick Commerce Grows, Blinkit Removes its "Zero Notice Period" Policy

Nitin Konde, Varun Bhardwaj

Oct 16, 2024 — 2 min read

Blinkit Ends Zero Notice Period Policy

Leading company in the quick commerce space, Blinkit, has extended notice periods for its staff, especially for senior management. A media source claims that this modification, which increases the notice period from zero to two months, is intended to help employers retain talent.

The choice to change employment contracts was made because Blinkit is up against competition in an industry that is estimated to be worth $5.5 billion. Talent retention is a key priority for Blinkit, as rivals like Zepto and Swiggy compete for a piece of this lucrative industry. The pressure to hang on to qualified employees has increased with well-funded competitors like Zepto recently investing $340 million and bigger firms like Walmart launching Flipkart Minutes in several Indian cities.

Initiative Provides Safeguarding Against Poaching

Blinkit's action is both proactive and reactive to the current situation. To prevent competitors from poaching, the notice time has been extended. Blinkit is aware that offers from competitors, especially those with substantial financial resources, may entice their best employees to leave.

This policy was implemented in July 2024 by Zomato, the company that runs Blinkit, and it represents a move towards greater safeguards for its employees. The goal of the policy is to provide a safety net that enables the business to keep workers on for longer. Considering how quickly talent is moving in the quick commerce industry, this is not surprising. According to a media report, "A lot of companies are doing that, and Blinkit is taking measures to avoid losing talent."

Additionally, it has been stated that Blinkit has started putting staff members who want to join direct competitors on garden leave for a period of two months. This strategy aims to stop confidential information from being disclosed.

Quick Commerce Companies Facing Severe Challenges

Although Blinkit is making a lot of efforts to protect its talent, it is not the only company in the industry dealing with these difficulties. Because these businesses have similar skill sets, quick commerce companies like Swiggy have been actively hiring from giants of online shopping like Amazon and Flipkart. Quick commerce companies have established a "hunting ground" for talent in areas linked to product design, backend operations, and advertising campaigns, making poaching a regular occurrence.

Companies such as Zepto, for example, have garnered media attention for their aggressive hiring practices, providing extremely competitive compensation and sizeable yearly raises to entice top performers. Employees may end up with yearly pay increases as a result of these tactics, which will increase the industry's rivalry for talent.