Blinkit Scraps 'Zero Notice' Amid Rapid Commerce Talent War

The 'zero notice' policy has been eliminated from the employment contracts of key employees at Blinkit, a rapid commerce company. The notice period for certain senior executives has been extended by the corporation from zero to two months.

This change is a response to the heightened competition in India's rapid commerce sector, which is estimated to be worth $5.5 billion. In this rapidly expanding market, Blinkit is in competition with companies such as Zepto, Flipkart, and Swiggy, all of which are simultaneously pursuing top talent. The utilisation of extended notice periods by Blinkit is perceived as a pre-emptive measure to discourage competitors from employing its employees.

This is a precautionary measure. Zepto and Flipkart, which are well-funded, may extend attractive offers to Blinkit employees, which could facilitate their transition to other positions. One individual quoted in the paper stated that "Blinkit is attempting to protect its workforce by implementing these changes."

In recent months, the rapid commerce sector has experienced substantial growth and investment, which has led to an increase in competition. Zepto has recently secured $340 million in funding, which has significantly enhanced its market position. Flipkart, a subsidiary of Walmart, has expanded its rapid delivery service, Flipkart Minutes, from its initial launch in Bengaluru to numerous regions across India.

Simultaneously, Swiggy, a significant competitor in the industry, has received approval for its Initial Public Offering (IPO), which is one of the largest IPOs by a modern company in recent years.

Blinkit has implemented a policy of placing employees who are suspected of departing for a direct competitor on "garden leave" for a period of two months. This approach is designed to deny competitors access to confidential corporate information. In order to mitigate the risk of data disclosure, personnel are promptly relieved of their responsibilities in such situations.

Although Blinkit is the first prominent rapid commerce startup to modify employment contracts promptly after instituting the zero-notice policy in July, talent poaching is a prevalent issue in the sector. The fast commerce sector is a promising area for talent recruitment from competitors, as it is a new and swiftly expanding industry.