Dunzo’s dark-store staff protests salary delays

Dunzo is once again grappling with financial difficulties. The employees at Dunzo’s dark stores in Bengaluru have opted to not resume their duties due to the delay in receiving their salaries for the month of July.

The recent salary delay has affected about 1,000 employees. The company had decided to delay paying of July salaries until early September. A salary limit of Rs. 75,000 for all staff members has also been imposed, irrespective of their initial salary agreements. Interestingly, these measures are being taken even though the company had managed to raise $75 million via convertible notes in April 2023.

As per media reports, the dark stores located in Indiranagar, Richmond Town and HSR Layout in Bengaluru have suspended their operations starting 17 August. Additionally, Dunzo’s two stores in Kormangala and ITI Layout have been non-operational since 14 August.

The company that once managed about 250 dark stores, is now left with just about seven in the city. Dunzo’s dark stores employ about 70 off-roll workers, who earn a monthly wage of up to Rs 20,handling the packaging of groceries and passing them on to designated delivery partners.

The closure of these stores is part of the company’s efforts to cut costs and achieve full operational capacity in the near future. Dunzo is already following a hybrid model that combines dark stores and partner stores to reduce operational expenses.