Zomato Owned Blinkit Delivery Executives On Strike, What’s Happening? ICICI Securities' Analysis

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.Blinkit delivery executives servicing ~50% of the dark stores in the National Capital Region area are on strike since April 12, 2023 demanding roll-back of recent changes made to delivery incentive structures in the region, according to media reports. We estimate Blinkit was operating ~370 dark stores pan-India as of Q3 FY23. This implies ~25% of the dark stores are currently not operational. Given that at least three-four days’ sales have already been lost, this implies ~1% loss in revenue from Blinkit and ~0.15% of consolidated revenue for Q1 FY24 – already. Why strike? According to media reports, Zomato Ltd. is trying to move from a fixed-fee model of Rs 25/delivery to a hybrid pricing structure of Rs 15/delivery and a supplementary incentive based on distance travelled. Apparently, this is being perceived by delivery executives as a significant cut to their earnings potential. Why was the tweak needed? We think the change in delivery fee structure indicates Zomato’s efforts towards cost control. In our view, this would allow Blinkit to increase the delivery radius for their existing dark stores and thus improve its network coverage with limited capex spends..Click on the attachment to read the full report:.Zomato - Wholesome Meal At A Deal: Motilal Oswal Initiates Coverage.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Zomato Owned Blinkit Delivery Executives On Strike, What’s Happening? ICICI Securities' Analysis

Blinkit delivery executives servicing ~50% of the dark stores in the NCR area are on strike since April 12, 2023

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

Zomato Owned Blinkit Delivery Executives On Strike, What’s Happening? ICICI Securities' Analysis

Blinkit delivery executives servicing ~50% of the dark stores in the NCR area are on strike since April 12, 2023

Choose a plan

Follow Us

DOWNLOAD THE APP