Quick commerce company Blinkit has recently made a significant change to its employment contracts, especially for key employees, by scrapping its 'zero notice' policy. The company has increased the notice period for several top-level staff from zero to two months, reported Moneycontrol.
This change comes in response to growing competition in the quick commerce industry, which is valued at $5.5 billion in India. Blinkit is facing stiff competition from other players like Zepto, Flipkart, and Swiggy, all of whom are in a race to attract and retain the best talent in this rapidly growing sector.
The move to introduce longer notice periods at Blinkit is seen as a proactive step to prevent its employees from being poached by rivals.
"This is a preventive measure. Companies like Zepto, which is well-funded, or Flipkart, can offer lucrative deals to Blinkit employees, making it easy for them to jump ship. Blinkit is trying to safeguard its workforce by making such changes," said a person quoted in the report.
The quick commerce sector has seen huge investment and expansion in recent months, which has intensified the competition.
Zepto recently raised $340 million, further solidifying its position in the market. Walmart’s Flipkart has also expanded its rapid delivery service, Flipkart Minutes, which has grown from its initial launch in Bengaluru to multiple cities across India.
Meanwhile, Swiggy, another major player in the sector, has received approval for its Initial Public Offering (IPO), marking one of the largest IPOs by a new-age company in recent years.
In cases where Blinkit suspects that an employee might be joining a direct competitor, the company has also started placing such employees on “garden leave” for two months. This practice is intended to prevent the sharing of sensitive company information with competitors. In some instances, employees are immediately relieved of their duties to avoid any risk of data leakage.
Though Blinkit is the first major quick commerce company to make such changes to employment contracts so soon after introducing the zero notice policy in July, poaching talent in the sector is common. The quick commerce industry is still relatively new and growing rapidly, making it a fertile ground for talent acquisition from rivals.
