The strike by Zomato-owned quick commerce platform Blinkit’s delivery workers has shut down over 100 dark kitchens in Delhi, Gurugram, Faridabad, Ghaziabad, Noida, and Greater Noida for the past three days and it is expected that a larger number of stores will also go offline in the coming days, according to media reports.
Delivery executives went on strike to oppose a change in their compensation system, which they allege will result in lower profits.
The media reports said that about 50-60 stores in Gurugram have closed, with more closures expected in Noida and Delhi as the new fee structure is implemented.
Customers face difficulties
In addition, customers in the region have been facing difficulties placing orders at offline stores that use the Blinkit app. These locations are currently marked as 'temporarily unavailable' due to ongoing maintenance, which has prompted several customers to voice their concerns on social media.
Blinkit’s presence in Delhi
Blinkit operates approximately 400 dark stores in 20 cities throughout the country, with a significant presence in the Delhi-NCR region, where half of its stores are located.
Zomato’s earnings in Q3 FY23
Meanwhile, Zomato's consolidated loss widened to Rs 346.6 crore (year-on-year) for the quarter that ended December 31, against a loss of Rs 63 crore in the same period last year, the company said.
The company said that adjusted revenue witnessed a 66 per cent growth to Rs 2,363 crore (YoY).
"We think that the current slowdown is a result of a few temporary factors -- macro slowdown for the mid-market segment, boom in dining out for the premium-end, and boom in travel at the premium-end," he said in the company's earnings results.
With inputs from IANS
