Zomato-owned Blinkit has extended its notice period for employees by two months amid increasing competition in India. The $5.5 billion Quick Commerce company recently amended its employment contracts for several employees, especially those working in senior positions. The report quoted sources familiar with the matter as saying that Blinkit had its employees sign an addendum, increasing their notice period from zero to two months.
The change in notice period at Blinkit comes amid growing competition in India’s instant commerce sector, which is worth $5.5 billion. Blinkit’s parent company Zomato had introduced a similar policy in July this year.
Risk of talent capture by competitors
The report quoted a source as saying, “This move by Blinkit has been taken in advance and is also a reaction to the events happening currently. A well-funded competitor like Zepto or a larger rival like Flipkart, a Can make attractive offers and easily attract talent from Blinkit. Many companies are doing this and Blinkit is taking measures to avoid losing talent.”
A second source cited in the report said, “In some cases where Blinkit knows for certain that an employee is going directly to a competitor, the employee is placed on garden leave for two months or immediately relieved.” “This is done to ensure that sensitive information from Blinkit is not leaked to others.”
Increasing competition in the rapid commerce sector
The instant commerce landscape in India is changing rapidly. Swiggy (owned by Swiggy Instamart) has received approval for its initial public offering (IPO), which is being touted as one of the biggest IPOs for a new-age company in recent years. Zepto has also secured $340 million in financing. While Walmart has recently expanded its presence by launching Flipkart Minutes in Bengaluru and later expanding it to several Indian cities.
