Cut-throat competition forces Blinkit to revise 'zero notice' policy

Facing pressure from rivals such as Zepto, Flipkart, and Swiggy, which are aggressively competing to attract and retain top talent, Blinkit has extended its notice period policy from zero to 2 months

Quick-commerce company Blinkit has recently updated its employment contracts, especially for key personnel, by discontinuing its 'zero notice' policy and extending the notice period for several top-level employees from zero to two months, according to a report by Moneycontrol.

Increased competition driving policy change

This shift comes as a response to the rising competition in India's $5.5 billion quick-commerce sector. Blinkit is facing pressure from rivals such as Zepto, Flipkart, and Swiggy, all of which are aggressively competing to attract and retain top talent in this rapidly expanding industry, the report said.

The decision to lengthen the notice period is viewed as a strategic move to curb employee poaching by competitors. A source mentioned in the report explained that companies like Zepto, which are well-funded, or Flipkart, could offer enticing packages to Blinkit employees, encouraging them to leave. The extended notice period is reportedly aimed at helping Blinkit retain its workforce and reduce the risk of losing talent to rivals.

 

Investment surge intensifies rivalry

The quick commerce sector has experienced a surge in investment and rapid growth, further intensifying competition. Zepto recently secured $340 million in funding, strengthening its market position. Meanwhile, Walmart-owned Flipkart has expanded its rapid delivery service, Flipkart Minutes, from its initial launch in Bengaluru to several other cities across India.

Additionally, Swiggy, another major competitor, has received approval for an Initial Public Offering (IPO), marking one of the largest IPOs by a new-age company in recent years.

In cases where Blinkit suspects an employee may be transitioning to a direct competitor, the company has introduced a “garden leave” policy, placing such employees on a two-month leave. This step is intended to safeguard against the leakage of sensitive company information. In certain situations, employees are immediately relieved of their duties to minimise the risk of data exposure.

Talent poaching: A common challenge in the industry

Although Blinkit is the first major quick-commerce company to modify employment contracts shortly after implementing the zero notice policy in July, talent poaching is common in this fast-growing sector, the report noted. The quick-commerce industry is still relatively young, and its rapid growth has created a competitive environment for talent acquisition among rival firms.