Bounce: The coronavirus pandemic and the prolonged nationwide lockdown have hit hard on the Indian Economy. Though the industries are now operating with full capacity to go back on track, it will still take a lot of time for the economy to completely survive. Also, some industries like the hospitality sector, rent, and travel facilities have been the worst affected ones and one such company is Bounce. Bounce is an Indian start-up that provides bike rental services.
Just a few months back, it was a million-dollar company but now the company is on the brink of closure and so it is selling all its two-wheelers, the majority of which are gearless scooters.
Bounce caters to its customers in several big metropolitan cities of India. This Indian start-up was once valued at 450 Million US dollars and there were around 600 employees in the company. But, that was the story before 2020. In March 2020, the coronavirus pandemic outbreak in the country and the resulting nationwide lockdown broke the backbone of the company.
The Indian company is now on an employee reduction spree and according to some latest media reports, the company has laid off over 80 percent of its employees within a year, including some top senior officers in the company’s management board.
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What’s also worth noting is that Bounce is selling all its two-wheelers in Hyderabad and the scooters are placed in an open field so that anyone can come and purchase them. The scooters are parked in an open ground near the Bharat Nagar Metro Station in Hyderabad. How much is the company charging for the used two-wheelers that is unclear as of now? Also, when we talk about its employees, so the start-up has brought down its monthly cost to the company from around Rs. 21 Crores in Feb 2020 to around Rs. 7 Crores in Feb 2021 and it even plans to bring this figure down to about Rs. 1 Crore per month in the near future.
This was quite literally sad as a large number of people are losing their jobs and also the company isn’t making a good amount of profit to do its part in supporting social and reviving the Indian economy. Now, a lot of other two-wheeler rental service providers to are now planning to upgrade their current portfolio from conventional petrol-powered scooters to electric ones. We believe Bounce might also later add some new electric two-wheelers in its portfolio. So, now you people know why Bounce is selling its electric scooters in an open ground in Hyderabad. What are your thoughts on this move of the Indian start-up? Do let us know in the comments section below.