Uber has been embroiled in several controversies in India and the US related to sexual harassment and aggressive culture. The investigation report led CEO Travis Kalanick to announce an indefinite leave of absence
The period from 2015 to 2016 was a tough year for the company even as other companies such as Dazo, TinyOwl, iTiffin, EatFresh and others in various parts of food-tech segment shut operations
The hyperlocal delivery segment, which was a must have for every institutional investor till almost a year ago has now gone under the radar due to poor unit economics and blurry sight of a near profitability.
Even as the graveyard for food tech startups expands, a few saner ones have remodeled businesses, rolled back discounts, cash backs and aiming it profits in the longer run.
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The hyper local delivery start-up Roadrunnr last week acquired the troubled food-ordering platform TinyOwl. Post the acquisition, Roadrunnr has been rebranded as Runnr and it will function as a food-ordering and delivery platform.
Lately, Flipkart told its campus hires they will have to wait six months more before they could join work at the etailer. Flipkart was in the midst of a ‘rebranding exercise‘, it said. But that has been the reason for a lot of startups who have cut jobs in the past, too.
Food ordering service Tinyowl is a prime example of both consolidation and a ramp-down. This heavily-funded venture has stopped operations in Bengaluru, Pune and Hyderabad. So the only city it is now operational in is Mumbai.
"We believe this (e-commerce) shake-up may intensify further, leading to the emergence of one or two strong companies within each sub-sector," said the research report by Kotak Institutional Equities.
The boom in online food ecommerce start-ups seems to be cooling off with some going out business while others are scouting for funds.