ZipGo shuts down operation of intra-city bus service division.
ZipGo undergoes mass firing and asks its 60 employees to leave the company.
ZipGo unable to get Rs. 300 Crore proposed funding from Subhash Chandra’s Essel Group.
Bengaluru-based shuttle service startup ZipGo has fired over 60 employees from its intra-city bus service division and has completely shut down operation of this facility. On seeing application of ZipGo, it can be noticed that it has suspended intracity shuttle services across all cities including Bengaluru and Mumbai.
According to Entrackr report, a mid-level employee (on condition of anonymity) who was fired from the company said “Intracity shuttle service has been suspended across all locations. The firm has fired over 60 employees who were looking after intra-city division,”
Recently ZipGo is providing inter-city bus service at few cities of India. Its app shows several buses from Delhi to Jaipur. However, searches from Mumbai to Pune, Kolkata to Asansol didn’t fetch any results or route suggestion on the web as well as mobile applications.
ZipGo has to cease operation of intra-city bus services because of the failure of Rs. 300 Crore proposed funding from Subhash Chandra’s Essel Group. Vessel group gas to face a major drop in its business when media reports highlighted a link between the group and Videocon in depositing of large cash during demonetization. The investigation is still in progress. Due to this issue share price of Essel dropped by 26%.
ZipGo has not raised single money from any investor since December 2017 and is struggling hard to raise funds from any other investors. The gradual loss of ZipGo is a lesson to existing and aspiring entrepreneurs. Startups must do proper diligence before saying yes to strategic money and certainly put enough clauses to safeguard their interest in a situation like this.
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