Protect me says "OLA / FLIPKART to GOI"
Karma is something that no one can escape from. Seems like it has caught up on the Indian Start-Up's Ola and Flipkart - who can now be termed cry baby, they became over night sensation stomping people lives. Millions of lives were brought to the streets with such companies with pure intention of making money. So when we ask ourself is it right for them to ask protection from GOI. Hell no !!
When Ola and Flipkart made a landfall there were people who's life and livelihood was at stake. Life of taxi drivers, small shop keepers, street vendors and more. Both Flipkart and Ola started off with foreign investments by pumping in unfair prices and competition which were difficult for local dealers and transport companies to deal with creating a monopoly.
When the local trade unions and transport unions went to the government for help, their requests were turned down or sent back and asked to compete with this money rich Start-up's with no protections. There were also arguments that Indian market is huge and there will always be enough customers for everyone. So why are they asking for protection today ?
What protection these companies are requesting today is the same protection the local traders and unions asked when these companies were implemented. They gave highly competitive prices and ruined the economics and markets with foreign funds. Today, there is a cash crunch and it is known fact that they are unable to survive with the excessive discounts and perks they are offering. We also know that there market value has dropped immensely in the past year.
Karma - The same unfair tactics that were pushed on local businesses and vendors when these companies started are pushed on these Start-up's now, by much stronger and capital rich companies like UBER or AMAZON. So why cry now ? If only the interests of the locals businessmen and vendors was dealt fairly - they would have all the rights to ask for protection today. What many economists predicted then is happening today. As a start-up it is necessary to understand India, before going for foreign funds.
If, a situation arises that Government of India need to protect OLA/ FLIPKART, a whole new plan has to be drawn to ensure there is no monopoly like situations and a ban on use of foreign capital to give unfair deals and offers should be implemented to save the markets. This way we can protect both the local merchants and Start-up culture.