Dunzo Daily's delivery executives on strike; operations under halt

9 Sep 2022 , 11:40 AM

Dunzo’s quick commerce activities under Dunzo Daily have come to a standstill in Bengaluru, its largest market, for the last two days as its delivery executives have gone on strike to oppose modifications to its delivery policy, according to sources.

As of Thursday afternoon, Dunzo Daily, the 20-minute delivery service, was still unavailable in many parts of Bengaluru. “Dunzo Daily will be back in a while,” flashed on its app.

Dunzo Daily’s operations had a severe impact in the last two days following the protests by its delivery executives at its office premises in Bengaluru, stated sources. However, later it managed to regain its operations partially in certain areas of Bengaluru.

Now, the main problem lies in the company’s operating perspective. It has started to push ‘batching of orders’ under its new delivery policy. The company has increased the workload of delivery executives by assigning multiple orders to service on a single trip.

Dunzo has also made internal technological modifications to how orders are distributed to delivery partners and chosen, leading to more conflict between the firm and delivery partners.

This headwind for Dunzo arrives when other quick commerce partners like Swiggy Instamart, Zepto, and BB Now are still actively operating across Bengaluru even though delivery timelines are affected due to ongoing rains and floods in parts of the city.

Dunzo also witnessed an impact on the delivery timelines of its ‘local stores’ services.

Dunzo, previously renowned for its pick-up and drop service, entered the quick commerce space around the time it closed a $240 million fundraising round sponsored by Reliance Retail in January.

During the June quarter and July, Dunzo experienced a monthly burn of more than Rs 100 crore, or almost $15 million, which the company is planning to reduce over time.