Resumption of Blinkit Operations by Zomato After Wage Protests Has No Significant Effect on Company’s Financial Performance

Zomato Ltd announced on Wednesday that the majority of stores in its grocery subsidiary, Blinkit, had resumed operations after being closed due to wage protests. As a result, the company’s shares rose by up to 5%. In a regulatory filing, Zomato stated that the disruptions caused by the protests did not have a significant impact on the company’s operations or financial performance. Therefore, they believe that there is no need to disclose the event under regulation 30 of the SEBI (LODR) Regulations, 2015.

According to Zomato’s filing, the company made the changes to improve the customer experience and reduce cancellation/order rejection fraud by a few delivery partners in the system. Such adjustments are made as needed from time to time. The Blinkit platform has received criticism from delivery partners for decreasing the payout for every delivery, from Rs 25 to Rs 15 per delivery. The move has sparked protests among delivery partners across the Delhi-NCR region, who believe that it will significantly reduce their earnings.

“To ensure the safety of our employees and delivery partners, we had to close down some stores for a few days. Most of these stores have now resumed operations,” the company said in the filing.