Blinkit Strengthens Employee Contracts Amid Fierce Talent War in India’s Quick Commerce Industry
Blinkit, a leader in India’s quick commerce space, has recently introduced changes to its employment contracts, particularly affecting senior staff members. According to sources familiar with the development, Blinkit has asked several employees, especially those in top-level positions, to sign an addendum that increases their notice period from zero to two months. This move comes amid intensifying competition in the $5.5-billion rapid delivery market in India, where companies are fiercely competing to attract and retain top talent.
The decision to eliminate the zero-notice period policy is seen as a proactive measure in response to the growing competitive pressures in the quick commerce sector. With players like Zepto, Swiggy, and even Flipkart entering the fray, Blinkit’s management appears to be taking steps to prevent talent from being poached by well-funded rivals. One insider noted that companies like Zepto or Flipkart can offer lucrative packages to Blinkit employees, making it easier for competitors to lure top talent away.
In fact, Zomato, which owns Blinkit, only introduced this new employment policy in July 2024. Since then, the competitive landscape has intensified significantly. For example, Zepto raised $340 million in funding during the same period, strengthening its position in the market. Walmart’s Flipkart has also launched its own quick commerce platform, Flipkart Minutes, expanding its reach to several Indian cities. Even Swiggy, a key player in the sector, has received approval for an initial public offering (IPO), one of the largest for a new-age company in recent years. These developments underscore the heightened competition and the need for Blinkit to protect its workforce.
To safeguard against potential talent leaks, Blinkit has also implemented stricter measures for employees suspected of moving to direct competitors. According to sources, if Blinkit believes an employee is heading to a rival, they may be placed on a two-month garden leave or relieved from their position immediately. This strategy is intended to prevent sensitive company information from being transferred to competitors, further justifying the company’s move to increase notice periods and enhance employee retention efforts.
While Blinkit has not officially commented on the changes, industry experts view this as a necessary step in an increasingly competitive environment. Poaching employees is not uncommon in the quick commerce sector, as companies battle to attract the best talent in a rapidly growing market. Blinkit’s decision to add clauses to its employment contracts is just one example of how companies are fighting to retain skilled employees amidst intense competition.
The quick commerce industry, which promises ultra-fast deliveries of groceries and essentials, has become a battleground for talent, with companies like Swiggy, Flipkart, and Amazon aggressively recruiting top performers. According to Anshul Lodha, managing partner at recruitment consulting firm Page Executive India, e-commerce giants like Amazon and Flipkart serve as prime hunting grounds for talent, given their expertise in advertising, warehouse operations, and backend logistics. Swiggy, in particular, is known to attract product and design talent, making it a favored employer in the quick commerce sector.
Poaching in the industry has become so rampant that companies are not only hiring top performers but also creating new roles to accommodate key executives from rival firms. Zepto, for instance, has been offering highly competitive salary packages and generous annual increments to lure talent. Lodha noted that high performers in growth-stage quick commerce companies could potentially double their salaries each year, highlighting the lengths to which companies are willing to go in order to secure top talent.
In this fiercely competitive landscape, Blinkit’s move to adjust employment contracts and impose longer notice periods is a strategic attempt to retain its workforce and prevent further talent loss. As competition heats up in India’s quick commerce sector, companies like Blinkit, Zepto, and Swiggy are likely to continue implementing measures to protect their talent and gain a competitive edge.
This ongoing battle for talent in the quick commerce space mirrors the broader trend in India’s booming startup ecosystem, where companies in high-growth sectors often resort to aggressive hiring strategies and countermeasures to stay ahead. The move to increase notice periods and tighten restrictions around employee exits is just one tactic in a larger strategy to secure long-term success in this high-stakes market. As competition intensifies, Blinkit and its rivals will need to stay vigilant and innovative in their approach to attracting, retaining, and protecting top talent.