Blinkit, owned by Zomato, has reportedly increased its notice period from zero to up to two months. According to a report by Money Control, the quick commerce company has recently modified its employment contracts for numerous employees, particularly those in senior positions. The report quotes sources familiar with the matter who told the publication that Blinkit has made its employees sign an addendum extending their notice period from zero to as much as two months.This change in notice period at Blinkit comes amid intensifying competition in India’s quick commerce sector that is valued at $5.5 billion.
Blinkit parent-company Zomato introduced a similar policy in July this year.
Risk of rival poaching talent
The report quotes one of the sources saying “Blinkit’s move is pre-emptive and also is a response to what is happening now. A well-funded competitor like Zepto, or a large rival like Flipkart, can make a handsome offer and easily poach talent from Blinkit. A lot of companies are doing that and Blinkit is taking measures to avoid losing talent,”.
“In certain cases where Blinkit for sure knows an employee is going to a direct competitor, the employee is now sent on a garden leave for two months or is relieved immediately to avoid sensitive information being leaked out of Blinkit to others,” said a second source as quoted in the report.
Rising competition in quick commerce sector
The quick commerce landscape in India is changing rapidly. Swiggy (owns Swiggy Instamart) has received approval for its initial public offering (IPO), projected to be one of the largest for a new-age company in recent years. Zepto has also secured $340 million in funding. While Walmart recently expanded its presence by launching Flipkart Minutes in Bengaluru and subsequently scaling it to multiple Indian cities.