Blinkit Scraps 'Zero Notice Period' Policy Amid Rising Competition In Quick Commerce; What This Means?

Blinkit, a leading player in the quick commerce market, has increased the notice period for its employees, particularly at the senior management level. According to a report by Moneycontrol, this adjustment sees the notice period extend from zero to two months, a change aimed at retaining talent.

The decision to amend employment contracts comes as Blinkit faces competition in a sector valued at approximately $5.5 billion. Competitors such as Zepto and Swiggy are vying for a share of this lucrative market, making talent retention a critical focus for Blinkit. With well-funded rivals like Zepto recently raising $340 million and larger players such as Walmart launching Flipkart Minutes in multiple Indian cities, the pressure to hold on to skilled personnel has intensified.

As highlighted in the report, "Blinkit's move is pre-emptive and also a response to what is happening now." The increased notice period serves as a safeguard against poaching from competitors. Blinkit is cognizant that offers from rivals, particularly those well-backed financially, could lure away their key talent.

Zomato, which operates Blinkit, introduced this policy in July 2024, signalling a shift towards more protective measures for its workforce. The policy aims to create a buffer that allows the company to retain employees longer. This comes as no surprise given the rapid talent movements in the quick commerce sector. As the report noted, "A lot of companies are doing that, and Blinkit is taking measures to avoid losing talent."

Moreover, Blinkit has reportedly adopted the practice of placing employees on garden leave for two months if they intend to join direct competitors. This tactic is designed to prevent sensitive information from being leaked.

While Blinkit is taking significant steps to shield its talent, it is not the only player in the market facing these challenges. Quick commerce companies, including Swiggy, have been actively recruiting from e-commerce giants like Amazon and Flipkart, capitalizing on the similar skill sets these companies possess. The need for talent in roles related to advertising campaigns, backend operations, and product design has created a "hunting ground" for quick commerce firms, making poaching a common practice.

For instance, companies like Zepto have made headlines for their aggressive recruitment strategies, offering highly competitive salaries and significant annual increments to attract top performers. Such practices can result in employees doubling their salaries annually, further inflating the competition for talent in the sector.