You wake up to a full-page advertisement in your national daily. You think to yourself – interesting app, great discount, guess they got VC funding too. Some days you think – another food/shopping/grocery app? they too got funding? Well, good for the economy, lot of job opportunities. And then you move on with your life.
Unfortunately, slowly the fog is clearing and stories emerging where it was neither good for the economy nor the employee! Some customers gamed the system a bit and got their little thrills. that’s about all.
Mint has published a long ‘cautionary tale’ on the food tech delivery startup – Foodpanda which claims to be active in 40 countries globally. The India story definitely is a potboiler! There are fake orders, fake restaurants, fake deliveries and real problems. Processes and corporate governance – what’s that?
See how one such scam works:
Surely there are casualties in such a tale – employees who are caught unaware, genuine investors taken for a ride. or you wonder, is everybody in on it?
Let this Mint revelation be an eye-opener and a lesson to all those in the space of building a good company that lasts.
The Mint article published today can (and must!) be read here.