{"id":1244814,"date":"2023-04-20T09:14:34","date_gmt":"2023-04-20T03:44:34","guid":{"rendered":"https:\/\/trak.in\/stories\/?p=1244814"},"modified":"2023-04-20T09:15:07","modified_gmt":"2023-04-20T03:45:07","slug":"blinkit-dark-stores-shutdown-rivals-swiggy-zepto-bigbasket-witness-40-increase-in-orders-without-any-marketing","status":"publish","type":"post","link":"https:\/\/trak.in\/stories\/blinkit-dark-stores-shutdown-rivals-swiggy-zepto-bigbasket-witness-40-increase-in-orders-without-any-marketing\/","title":{"rendered":"Blinkit Dark Stores Shutdown: Rivals Swiggy, Zepto, BigBasket Witness 40% Increase In Orders Without Any Marketing"},"content":{"rendered":"\n<p>Now that Blinkit has been forced to shut down several dark stores in several areas in Delhi, rivals Tata Group-owned Big Basket&#8217;s BBNow and Zepto have seen a sharp boom in business.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2023\/04\/Untitled-design-68-2-1280x720-2-1024x576.jpeg\" alt=\"Blinkit Dark Stores Shutdown: Rivals Swiggy, Zepto, BigBasket Witness 40% Increase In Orders Without Any Marketing\" class=\"wp-image-1244825\" srcset=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2023\/04\/Untitled-design-68-2-1280x720-2-1024x576.jpeg 1024w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2023\/04\/Untitled-design-68-2-1280x720-2-300x169.jpeg 300w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2023\/04\/Untitled-design-68-2-1280x720-2-768x432.jpeg 768w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2023\/04\/Untitled-design-68-2-1280x720-2.jpeg 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>The closure comes after protests and strikes staged by delivery executives&nbsp;<\/p>\n\n\n\n<p><strong>Reduced pay<\/strong><\/p>\n\n\n\n<p>The matter has to do with the lowering of payouts.<\/p>\n\n\n\n<p>The workers are demanding rollback of the company\u2019s revised payout structure.<\/p>\n\n\n\n<p>Blinkit has changed its payout system from a flat Rs 25 per delivery (plus Rs 7 during peak hours) to a Rs 15 per delivery minimum fee along with a distance-based component.<\/p>\n\n\n\n<p><strong>Zomato statement<\/strong><\/p>\n\n\n\n<p>The changes to pay were made to \u201caddress the needs of delivery partners, improve customer experience and reduce cancellation\/order rejection frauds by few delivery partners in the system,\u201d Zomato <a href=\"https:\/\/theprint.in\/india\/indias-zomato-says-most-blinkit-stores-reopened-after-wage-protests\/1527130\/\">said<\/a>.<\/p>\n\n\n\n<p>Rivals such as Swiggy Instamart, Zepto, Dunzo and BigBasket saw their order volumes surge up to 40 percent and marketing costs drop by as much as Rs 1 crore in the last five days.<\/p>\n\n\n\n<p><strong>Orders volume, revenue, savings<\/strong><\/p>\n\n\n\n<p>\u201cWe are getting the orders and data of tens of thousands of their customers.&nbsp;<\/p>\n\n\n\n<p>It\u2019s giving us free marketing and we have saved as much as Rs 1 crore\u2026&nbsp;<\/p>\n\n\n\n<p>This is the amount we would have to spend to get these new users,\u201d said a senior executive of a quick-commerce player that has seen order volumes surge 30-40 percent week on week.<\/p>\n\n\n\n<p>Two other executives at different quick-commerce firms said they were seeing order volumes rise by 25 percent and 30 percent.<\/p>\n\n\n\n<p><strong>User retention&nbsp;<\/strong><\/p>\n\n\n\n<p>However new users won\u2019t have good retention on the platforms as consumers tend to return to their go-to app whenever things get back to normal.<\/p>\n\n\n\n<p>\u201cFor example, we saw our food delivery orders almost double when one of our rivals saw a strike in Chennai recently.&nbsp;<\/p>\n\n\n\n<p>But it was back to normal when the strike ended,\u201d said one of the executives.<\/p>\n\n\n\n<p><strong>Similar situation<\/strong><\/p>\n\n\n\n<p>The situation in Blinkit, and the quick-commerce space in general, is <a href=\"https:\/\/www.moneycontrol.com\/news\/business\/startup\/blinkit-mess-quick-commerce-rivals-feast-on-as-sales-surge-marketing-costs-drop-10427561.html\/amp?utm_campaign=fullarticle&amp;utm_medium=referral&amp;utm_source=inshorts\">reminiscent <\/a>of what food delivery players like Zomato and Swiggy had experienced earlier.<\/p>\n\n\n\n<p>About five years ago, the payout to a food delivery partner was around Rs 90 but has now reduced to about Rs 57-60, analysts said.<\/p>\n\n\n\n<p><strong>A trend not unusual<\/strong><\/p>\n\n\n\n<p>Swapnil Potdukhe, assistant vice president, JM Financial explains that strikes are common when businesses reach a certain scale.<\/p>\n\n\n\n<p>The next objective is to focus on profits, so the incentives start tapering off.\u201d<\/p>\n\n\n\n<p>According to an industry executive, the hyperlocal delivery sector&#8217;s modus operandi is to cut delivery fees paid to riders whenever the volume of orders rises in an area.<\/p>\n\n\n\n<p><strong>Strategy<\/strong><\/p>\n\n\n\n<p>Companies make a rough calculation such that a delivery worker gets to earn around Rs 15,000 per month in a top metro.<\/p>\n\n\n\n<p>This calculation is based on the assumption that the gig worker is logged on for 10-12 hours per day for 26-27 days a month.<\/p>\n\n\n\n<p>&#8220;As the number of deliveries per worker per hour rises when the platforms&#8217; total orders in an area grow, the companies look to make their orders more profitable by cutting the payouts per order,&#8221; an insider.<\/p>\n\n\n\n<p><strong>Incentives&nbsp;<\/strong><\/p>\n\n\n\n<p>On top of the per-order payouts, there also used to be fuel and delivery volume-based incentives, which could go up to Rs 1,400 per week in some cases.<\/p>\n\n\n\n<p>However, these incentives have also been gradually done away with, giving further reason to protest.<\/p>\n\n\n\n<p>A source close to the developments said that Blinkit will roll out new rate cards eventually to all of the dark stores in each city it is present in.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Now that Blinkit has been forced to shut down several dark stores in several areas in Delhi, rivals Tata Group-owned Big Basket&#8217;s BBNow and Zepto have seen a sharp boom in business. The closure comes after protests and strikes staged by delivery executives&nbsp; Reduced pay The matter has to do with the lowering of payouts. [&hellip;]<\/p>\n","protected":false},"author":24,"featured_media":1244825,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[1001,1408],"class_list":["post-1244814","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-blinkit","tag-swiggy-instamart"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Blinkit Dark Stores Shutdown: Rivals Swiggy, Zepto, BigBasket Witness 40% Increase In Orders Without Any Marketing - Trak.in - Indian Business of Tech, Mobile &amp; Startups<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/trak.in\/stories\/blinkit-dark-stores-shutdown-rivals-swiggy-zepto-bigbasket-witness-40-increase-in-orders-without-any-marketing\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Blinkit Dark Stores Shutdown: Rivals Swiggy, Zepto, BigBasket Witness 40% Increase In Orders Without Any Marketing - Trak.in - Indian Business of Tech, Mobile &amp; Startups\" \/>\n<meta property=\"og:description\" content=\"Now that Blinkit has been forced to shut down several dark stores in several areas in Delhi, rivals Tata Group-owned Big Basket&#8217;s BBNow and Zepto have seen a sharp boom in business. 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