Blinkit Business Model Intact, Says Eternal After Removal Of 10-Minute Delivery Branding
"There is no change in business model that could have any material impact on the company," Eternal said.
Eternal Ltd. clarified late Tuesday that there is no change in the business model of quick commerce business Blinkit after reports earlier in the day said it removed the 10-minute delivery promise from its branding to comply with government directions.
"We would like to clarify that there is no development in the company that warrants any disclosure under listing rules. Specifically with respect to our quick commerce business Blinkit, there is no change in business model that could have any material impact on the Company," a stock exchange filing said.
The Labour Ministry directed quick-commerce companies like Zomato, Swiggy, Blinkit and Zepto to stop marketing and branding 10-minute delivery timeline, citing concerns over gig worker safety. Union Labour Minister Mansukh Mandaviya met representatives of these platforms and told them to prioritise the safety of delivery partners.
According to news agency PTI, Blinkit has revised its principal tagline from '10,000+ products delivered in 10 minutes' to '30,000+ products delivered at your doorstep'.
Other aggregators are expected to follow suit in the coming days.
The Labour Ministry directive came after gig workers went on strike in December to demand better payouts and improved working conditions.
Aam Aadmi Party MP Raghav Chadha welcomed the government's intervention and described it as a timely and compassionate step. "When ‘10 minutes’ is printed on a rider’s T-shirt, jacket or bag and a timer runs on the customer’s screen, the pressure is real, constant and dangerous,” Chadha said in a social media post.
In a recent post on X, Eternal Group CEO Deepinder Goyal had claimed that the 10-minute delivery promise does not pressure riders or lead to unsafe driving, as they are not shown the 10-minute timer on the app.
"Quick commerce’s 10-minute promise DOES NOT put pressure on gig workers, and it DOESN’T lead to unsafe driving. Why? The most common concern is that faster delivery promises translate into pressure on delivery partners to drive unsafely. That isn't how the system operates," he said.
Shares of Eternal ended 3.2% higher at Rs 294.55 on the NSE, compared to a 0.22% drop in the benchmark Nifty 50. The stock is up 30% on a 12-month basis.
