REUTERS/Yara Nardi Francesco Seminario, a cab driver, wears a protective mask while sanitizing his cab, as the business has faced losses in the country since the coronavirus outbreak, in Milan, Italy February 28, 2020. <ul class="summary-list"><li>Uber said it might suspend the accounts of passengers and drivers diagnosed with the novel coronavirus.</li><li>Uber said it would give "financial assistance" to suspended drivers for 14 days, but didn't give further detail.</li><li>The ride-hailing company is also handing out disinfectant to drivers to keep their vehicles clean, but said supplies are limited.</li><li>The coronavirus outbreak has thrown the precarity of gig economy workers into sharp relief, since they rarely have the right to sick pay.</li><li><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories</a>.</li></ul>Uber notified riders and drivers that it may temporarily suspend the accounts of anyone who has tested positive for the coronavirus or have been exposed to it, the ride-hailing company said on Wednesday.The company said it would offer financial assistance for 14 days to suspended cab and delivery drivers. The company didn't go into detail, and it isn't clear that Uber's financial assistance would directly match lost earnings.Uber treats its drivers as contractors rather than employees, meaning they are not entitled to sick pay and other rights.The company, which has already taken action in some affected markets, said it had a team working around-the-clock to support public health authorities in their response to the epidemic.Uber laid out the company's detailed policy on the outbreak for all riders and drivers <a href="https://www.uber.com/us/en/coronavirus/">on its website</a>, outlining the steps the company has taken to manage the situation."We have a dedicated global team, guided by the advice of a consulting public health expert, working to respond in every market where we operate around the world," Uber said."We've already helped drivers in some affected areas, and we're working to quickly implement this worldwide."Uber last month suspended 240 accounts of users in Mexico who may recently have come in contact with someone possibly infected with the new coronavirus.The outbreak of the novel coronavirus has highlighted the precarity of gig economy workers, such as Uber drivers. In the UK, lawmakers called on Uber and rival ride-hailing firm Ola to offer sick pay and other worker rights, as well as additional allowance to any driver diagnosed with the disease.Wes Streeting, an MP for the UK's Labour party, said in a statement: "The coronavirus risk has thrown into sharp relief just how vulnerable workers in the gig economy are to bouts of illness and the resulting loss of pay."Many drivers will feel compelled to carry on working when they're unwell, potentially putting themselves and others at risk. Operators must act immediately to reassure drivers and the travelling public that they'll treat drivers with the fairness, compassion and respect they're owed."In the US, gig workers <a href="https://fortune.com/2020/03/10/gig-workers-petition-for-sick-leave-coronavirus/">have petitioned their companies for sick leave</a>.Axel Springer, Insider Inc.'s parent company, is an investor in Uber.<a href="https://www.businessinsider.com/intelligence/30-big-tech-predictions-for-2020?IR=T&amp;itm_source=businessinsider&amp;itm_medium=ctgr_bii&amp;itm_term=ctgr_leadgen&amp;itm_content=uber&amp;itm_campaign=30-big-tech-predictions-for-2020"></a>

Uber may suspend drivers who have coronavirus and will offer financial help for 14 days

<ul><li>In <keyword id="6354321" type="CITY" weightage="20" keywordseo="Bengaluru">Bengaluru</keyword>, long queues were seen at various polling stations. </li><li>Ola has partnered with the Election Commission to provide free cabs for Persons with Disabilities. </li><li>Startups in Bengaluru hope for better policies and access to capital from the government as they head out to vote.</li></ul>After a night of heavy rains, the city of startups – Bengaluru – has been voting today as India conducts phase 2 of polling for its general elections. And the startups are doing their part to stay involved in the process. Indian ride-hailing unicorn Ola Cabs, for whom Bengaluru is home base, has allotted 270 cabs to the Election Commission. These cabs will help Persons with Disabilities commute to the polling booths in Bengaluru, Mysuru and Mangaluru. Ola has also made it possible for Nodal Officers to check on the status of the scheduled pick-ups of PwD voters through calls to the driver partners. “In the recent past, we have seen that availability of convenient transport options has resulted in positive voter turnout and we will continue to back initiatives that support the constitutional machinery of the country. We are glad to partner with the local authorities and facilitate hassle-free mobility for every voter in Bengaluru,” said Vishnu Bommareddy, Regional Head – South at Ola. Meanwhile, Bengaluru-based Sharechat has weeded out 487,000 posts on its platform which violated community guidelines because of abusive content. Sharechat, which is India's own social media platform had earlier signed the 'Voluntary Code of Ethics’ to make way for fair elections. But as they go out to vote, entrepreneurs have a lot to ask from the government. From access to funding to angel tax issues and better policies, <keyword id="138263" type="PERSON" weightage="20" keywordseo="startup">startup</keyword> founders had a list of reasons as they set out to vote. “Startups expect support from an extended eco-system, which includes the government. The biggest hurdle to bring such ideas to the fore is access to capital. In this light, the angel tax should be abandoned with immediate effect. It goes against the ethos of supporting innovation,” said Mayank Bidawatka, co-founder of Vokal, which is an information and knowledge sharing app to bridge the digital knowledge gap among non-English internet users by enabling peer-to-peer knowledge sharing using voice. Another point raised by startups is the possibility of internet monopolies in India and the required action that the government has to take to stop it from happening. “Our government should also have policies around creating a fair playing ground for home grown companies to take on global competitors that have a capital advantage because of existing international operations,” said Bidawatka. When it comes to policies, it's not just about the introduction of new ones but also more work on the current ones. “The most important problem to solve is that startups need a lot more clarity on what are the regulations and compliances in black &amp; white. The ambiguity slows down the innovation more than anything,” said Rajan Bajaj, founder and CEO, Slicepay. With the Twitter hashtag #VoteMaadi, Bengalureans persuaded each other to go out and vote. Harish Bijoor, a brand consultant, voted at the polling booth at the Seventh Day Adventist High School on Old Airport Road, Bengaluru. “The opening crowds in the queues were robust, I only hope we beat our voting turnout number of last elections,” Bijoor told Business Insider, right after he cast his vote. See Also: <a href="https://www.businessinsider.in/job-losses-will-haunt-bengaluru-indias-silicon-valley-as-it-goes-to-polls-today/articleshow/68930893.cms">Job losses will haunt Bengaluru, India’s Silicon Valley, as it goes to polls today</a>

Elections 2019: From Angel Tax to better policies, here’s why the city of startups headed out to vote

<ul><li>Uber Eats in India discontinued its operations on January 21 and was acquired by food giant Zomato.</li><li>We speak to industry experts to find out the reasons why the food delivery platform took a nosedive and if the onus can be put on macro-economic factors or its brand-building strategy.</li><li>Experts opine that working with minimum funding, rivaling against stronger communications from competitors, disadvantages of being a late entrant, not having a separate identity, getting sidelined from the parent company and offering deep discounting were some of the factors that led to its decline.</li></ul> Food aggregator Uber Eats, which started its journey in 2017, was acquired by Zomato on January 21 for ₹2,485 crore. While its entity will cease to exist, Uber Eats’ consumers, restaurants and delivery partners will now be directed to Zomato. However, the buyout has left more than 200 employees on a cliffhanger. The acquirer Zomato started in 2008 and now has over 40 million users. Swiggy, on the other hand, started in 2013 and has gathered 42 million users. Uber Eats, which was established just three years ago, had over 10 million users. And with Uber Eats’ huge consumer base in its kitty, Zomato will now have control over 50-55% of the food delivery market. Experts opine that one of the reasons for Uber Eats downfall was its heavy discounting strategy. The operational losses amounted to ₹2,197 crore, more debts followed and a heavy competitive market did not let it sustain. As Uber Eats hits its brink and merges with Zomato, we speak to experts to find out the reasons, what could the platform have done differently to sustain and explore if upping its marketing game before would have helped in dodging the bullet. Increasing the frequency of communication with audiences Uber Eats had on-boarded Alia Bhatt as its brand ambassador -- the only food aggregator in India to get a celebrity involved in its communication. However, it released its first brand campaign after two years of its existence -- in the month of January 2019 called ‘Everyday moments.’ According to Voodly, it garnered more than 50.3 million views by the end of January and secured the first spot on the list of Top 10 Most Watched Indian Ads on YouTube. 
 
 
 
 
 
 
 
 
 <div type="Youtube" id="fUN47Yeefvo" title="Alia’s Tinda Moment! | Uber Eats" thumbUrl="https://i.ytimg.com/vi/fUN47Yeefvo/mqdefault.jpg"></div>



















 Karthik Srinivisan, Social Media and Brand Expert, says that there isn’t much for food aggregators to talk about so its communication strategy cannot be blamed. The ads can be about ‘variety, prompt delivery, post-delivery customer care, ease of ordering, UI/UX, payment options, loyalty program, promotions, etc.’ Gone are the days when brands would wait for some key occasions for a big media splash. Now it is more about participating in daily conversations, listening to what your consumers say. And being active on social media isn’t very expensive either. Srinivasan thinks Uber Eats could have been more consistent like Zomato and Swiggy here. “To be in the top-of-mind recall in such a category, the brands need to continuously be in the buzz. Zomato and Swiggy have cracked that code to a large extent, always being in the social buzz one way or another. Brands are moving away from one or two big-budget media blitzkrieg every year to announce their brand name to the largest number of people, to having sustained presence throughout the year to the most appropriate target audiences. This ensures that brands do not have only two peaks in a year where people notice their communication, but there's a consistent wave (instead of peaks) all through the year where a large enough number of target audiences notice their brand. Uber Eats perhaps did this less impressively or consistently compared to both Zomato and Swiggy,” adds Srinivasan. However, Srinivasan says the real reason is unplugging Uber Eats’ support system. “Beyond all this is the investors' appetite to continue funding these businesses despite losses. At some point, they may want to pull the plug to cut their losses and that could be the bigger reason for the sale.” N Chandramouli, CEO, TRA Research feels Uber Eats did not offer anything different from its competitors and its USP wasn’t clear in its communication. “Other than the fact that they used a celebrity for endorsements, I think the ads did not communicate much. With more number of restaurants available on the competing apps, the promise of variety or choice, felt lame,” he explains. Chandramouli rates Zomato’s communication strategy the most innovative in the category, followed by Uber Eats and then Swiggy. Late mover disadvantages Almond Branding’s Founder and Director, Shashwat Das, thinks the reasons for Uber Eats’ downfall has more to do with the business model and category dynamics rather than its communication strategy. “The two largest incumbent players in the market, Swiggy and Zomato, were already half-way to the top by 2017 and had by now exclusively tied up with major restaurants. Uber had to hence rely on heavy discounting to acquire and retain users and deep discounting strategy is never sustainable as consumer keeps benefiting but none of the market players win in the battle of dominance. Last-mile delivery is an operations-heavy, low-margin business where most of the startups failed due to lack of knowledge, field experience, and funding,” notes Das. “Uber knows from its cab hailing experience that any app brand that is not number 1 or 2 in the country it operates in, will find it difficult to be a successful and profitable business. In any app-based delivery brand, only ONE brand remains top-of-mind for consumers, with one more kept as backup. There is rarely room for a #3,” seconds Chandramouli. Some of the restaurants in India still offer free home delivery with no price caps and Das thinks the food market isn’t easy to crack. Downloading more apps, building new relationships and settling for lesser pay cuts did not make a stronger pitch for restaurant partners either. “Once an app signs up a merchant, a regular flow of business determines what importance the delivery app holds for the restaurant. Plus, the incumbents had more focus, spend-power and aggression than Uber Eats. With Uber Eats India accumulating more losses than Uber, its cab hailing sister-concern, added to the pressure from international investors after their poor IPO, the only good option for Uber was perhaps to cut losses and focus on their core,” says Chandramouli. Developing a distinct identity While Uber Eat’s core idea was to piggyback on Uber’s image and use its established network, Chandramouli suggests that this wasn’t a smart move as it affected Uber’s disruptor position. “I think they should have launched the food-delivery business under a different brand. Truly speaking, Uber's cab hailing app was always recognized as an innovator and leader, but by launching Uber Eats, it almost seemed like a me-too, copycat brand, losing its innovator positioning. Another risk of extending the Uber brand to this new business was that cab hailing apps business required a more involved and intimate decision of the consumer, which a food-delivery app did not,” he elaborates. Thanks to Swiggy and Zomato’s heavy funding, they had the bandwidth to innovate and offer discounts. However, their core focus is food delivery and Uber’s, on the other hand, is mobility. Das thinks this could be one of the reasons why it was sidelined and cut at the source when it fell loose. “Even though Uber Eats was launched with much fanfare, Uber couldn’t focus on it as much as its competitors. Clearly its core mobility ambitions in India were its top priority. Cab hailing companies like Ola and Uber after having burnt their fingers in this cash-guzzling sector saw more merit in focusing on their core rather than the side businesses,” says Das. Was it a smart move for Zomato? As per media reports, Uber will get a 10% stake in Zomato in a deal that values Uber Eats at $300-350 million. "It was a bad deal for Zomato I think, giving away stock worth 300 million USD, to a company struggling to stay afloat. I think Swiggy will gain from this. And for Uber, of course, this seems to be their long term strategy of buying into local food compaines," says Shubho Sengupta, Brand Consultant. "There is no economic crisis for those who order on Zomato. They are in the top 15% earners of this country," adds Sengupta. All eyes on Swiggy and Zomato While Dunzo and Food Panda also exist in the battleground, the horse race will continue between two stalwarts Zomato and Swiggy. This consolidation, experts opine, will bring some more financial discipline, nudge them to be more creative and source the much needed tech support from their parent companies.

What went wrong with Uber Eats?

<ul><li>The Japanese car making giant has been hit by severe slowdown in car sales in India.</li><li>Suzuki shares have lost over a sixth of its share value this year due to the fear of depleting earnings.</li><li>Maruti accounts for over 52% of Suzuki’s global sale volumes.</li></ul>India’s largest car maker Maruti Suzuki has cut production for eight months in a row due to lack of buyers. The depleting earnings for Maruti is affecting its Japanese parent Suzuki, who just announced a nearly 40% cut in its estimate for operating income this year. The shares of Maruti fell over 2% immediately after the announcement from Suzuki. "The Company hereby revises the consolidated business forecast due to decrease in Japan production in the course of restructuring final inspection scheme, slowdown in Indian automobile market, and exchange rate fluctuations," <a href="https://www.release.tdnet.info/inbs/ek/140120191010406987.pdf" data-type="tilCustomLink" target="_blank">Suzuki said in a filing</a> with the stock exchanges in Tokyo. <table style="width: 188pt;"> </colgroup> <tbody><tr> <td class="xl63" style="height:15.0pt;width:101pt">March 2020 Forecast</td> <td class="xl63" style="border-left-width: initial; border-left-style: none; width: 87pt;">Cut</td> </tr> <tr> <td class="xl64" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 101pt;">Net sales</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 87pt;">10.30%</td> </tr> <tr> <td class="xl64" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 101pt;">Operating income</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 87pt;">39.40%</td> </tr> <tr> <td class="xl64" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 101pt;">Ordinary income</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 87pt;">35.30%</td> </tr> <tr> <td class="xl64" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 101pt;">Net income </td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 87pt;">30%</td> </tr></tbody></table> Brokerage house CLSA has maintained a 'buy' rating on Maruti Suzuki with a target price of ₹7,950 over the next 12 months hoping that the new models will lure some buyers who are still on the fence. The slowdown in car sales is not unique to Maruti. Car sales in India fell 20.5% in September compared to a year earlier. Aside from the economic slump in India, car buyers have shied away from showrooms expecting duty cuts and lower prices as well as fearing a loss of value for their new cars when the new emission norms kick in next year. This has been a debilitating blow for Suzuki for whom India makes for <a href="https://economictimes.indiatimes.com/industry/auto/maruti-continues-to-drive-suzukis-global-growth-story/articleshow/67860711.cms?from=mdr">over half of all its global sale volumes</a>. “In view of the current sales environment, we lower our estimates for India domestic sales to +0.2% for FY2019 (from +5.4%) and +3.7% for FY2020 (+6.4%),” JPMorgan said in a report in June. The steady decline in car sales in India has been the worst in 18 years, according to the Society of Indian Automobile Manufacturers (SIAM). In September 2001, after the tech bubble burst plunging the global economy into a temporary crisis, the sales had dropped down by 21.91%. In rural India, the decline in demand for cars is attributed to a protracted farm crisis, made worse by the ongoing water crisis and deficient monsoon in many parts. This has had a significant impact on Maruti, which has a deeper reach and penetration outside the big cities too. People in India increasingly prefer cab aggregators like Ola and Uber, or even <a href="https://www.businessinsider.in/cars24-used-cars-startup-could-soon-turn-profitable-will-breakeven-by-december-2019/articleshow/69993448.cms">second hand cars to new ones</a>. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/mahindra-suvs-and-pick-up-trucks-are-a-rage-in-south-africa-even-in-a-shrinking-market/articleshow/71518308.cms" data-type="tilCustomLink" target="_blank">Mahindra SUVs and pick-up trucks are a rage in South Africa even in a shrinking market</a> <a href="https://www.businessinsider.in/union-budget-2019-indian-government-announces-tax-subsidy-for-purchasers-of-electric-vehicles/articleshow/70091003.cms">Tata Motors, Maruti, Mahindra will benefit from tax deductions on electric vehicles</a> <a href="https://www.businessinsider.in/cars24-used-cars-startup-could-soon-turn-profitable-will-breakeven-by-december-2019/articleshow/69993448.cms">EXCLUSIVE: Cars24 is racing towards profitability as Indians choose used cars over new ones</a> <a href="https://www.businessinsider.in/tata-motors-jaguar-land-rover-moodys-downgrade/articleshow/69889499.cms">Jaguar Land Rover is dragging Tata Motors along in its downward spiral</a>

Suzuki just slashed its operating income forecast by 40% citing slower sales in India

<div class="KonaFilter image-container display-table"><div><div class="image on-image">Max Whittaker/ReutersTaxi drivers protest against transportation network companies such as Uber and Lyft.</div></div></div><ul><li>London just banned Uber from operating in the UK capital.</li><li>The move could pose serious problems for Uber.</li><li>Uber says it will appeal the decision, calling it "just wrong."</li><li>It could be just the start. Uber faces other legal battles in key cities</li><li><a href="https://www.businessinsider.com/international?r=US&amp;IR=T">Visit Business Insider for more stories.</a></li><li><a href="https://markets.businessinsider.com/stocks/uber-stock">Watch Uber trade live here.</a></li></ul>London has stripped Uber of its license to operate in the UK capital, the city's transport authority confirmed today, in a move that not only caps a bitter end to a two-year struggle for legitimacy, but also opens up fresh fears about the sustainability of the business model.While the company has said it will appeal the move, it does not look in a good position to overturn the ruling. Following a series of scandals in 2017, Uber has tried to clean up its act - but not enough to placate TfL and the very powerful taxi lobby of black-cab drivers who have lost market share to the upstart.The strength of this lobby may have a lot to do with the decision, but the failings in London could just easily be seen elsewhere.Shares printed -5.9% in pre-market trading at $27.82, although the stock opened down about 4% at $28.46, barely a couple of dollars above its all-time low. Following the initial selloff the shares rallied to within 0.7% of Friday's closing price.<h2>Largest market in Europe </h2>Uber has clearly suffered a big blow with this ruling. There is an immediate top-line hit: London, with about 3.5 million users, is the largest market in Europe for the ride-hailing app.London is also one of the group's "fab five" cities - along with New York, San Francisco, Los Angeles and Sau Paulo - that account for around a quarter of global revenues. In that sense, there is likely to be a clear and obvious hit to earnings growth, if the ruling is upheld, which looks likely.As Uber says itself: "Any inability to operate in London, as well as the publicity concerning any such termination or non-renewal, would adversely affect our business, revenue, and operating results."In London, competition in the shape of Bolt and Ola are ready and willing to step in at the drop of a hat; Uber could be forgotten pretty quickly once gone. Local competition is a problem wherever Uber extends its reach.More broadly, the decision today betrays the scope and depth of the legal and regulatory problems faced by Uber. The list of legal issues either historic or ongoing is long and broad both in scope and geography.<h2>Cities and local lawmakers have leverage</h2>These present ongoing overhang for the stock. Whilst there have been problems with corporate culture and the vetting of drivers, by-and-large the run-ins with the regulators and policymakers pertain to the very structure of the business itself. Taxation, labour laws, and consumer safety are the three legs on the milking stool of regulatory instability.Cities and local lawmakers have considerable leverage should they wish to use it. Uber will continue to face elevated competition from local rivals and a high degree of regulatory scrutiny that threatens to undermine how it does business.From Chicago to Los Angeles, New York to San Francisco, there have been all kinds of legal roadblocks. City authorities have been alarmed at the rise of Uber and have pursued a range of legal and regulatory avenues to stymie the company. An outright ban though has not been considered in other major cities, but how long before some follow?Already in a number of key markets, including Argentina, Germany, Italy, Japan, South Korea, and Spain, the company's ridesharing business model has been blocked, capped, or suspended, or Uber has been required to change its business model.Whilst Uber investors have been able to accept some degree of regulatory overhang, London's example could point the way to cities taking an even tougher stance.Quite simply, if Uber is barred from a couple more big cities there is a risk it won't be able to maintain the kind of critical mass required to attract the capital needed to sustain a loss-making enterprise of this scale. Uber remains good at attracting investors, but a couple more cases like this and it may not be.<h2>Uber's cash pile is a small mercy </h2>Uber has about $12.7 billion in cash on hand, and could sustain its burn-rate for perhaps two or three years. That's a small mercy, if long-term sentiment crumbles.At least the London decision does do one thing in Uber's favour - it will help it reduce the cash burn, a strategy that management has tentatively started to favour as it contends with greater investor scrutiny after going public. Uber has burned through $7 billion in cash this year alone as it pursues a growth-at-all-costs model.London is a timely reminder that you can't count on growth to cover up the cracks of a business model that is fundamentally flawed.Neil Wilson is chief market analyst at Markets.com in London. <a href="https://www.businessinsider.com/intelligence/future-of-retail?IR=T&amp;itm_source=businessinsider&amp;itm_medium=ctgr_bii&amp;itm_term=ctgr_leadgen&amp;itm_content=uber&amp;itm_campaign=future-of-retail-2"></a> <div class="margin-top"> <h3>NOW WATCH: <a href="https://www.businessinsider.com/singles-day-alibaba-25-billion-largest-shopping-holiday-2018-11">How Alibaba turned a fake holiday into a $25 billion shopping extravaganza that's bigger than Black Friday and Cyber Monday combined</a></h3> <div> </div> </div>

Uber's problems in London could be just the start - and investors might not stick around

<keyword id="6481662" type="COMPANY" weightage="100" keywordseo="Jasper-Infotech">Jasper Infotech</keyword>, the owner of <keyword id="1705292" type="UNKNOWN" weightage="100" keywordseo="Indian-e-commerce">Indian e-commerce</keyword> giant <keyword id="541988" type="COMPANY" weightage="100" keywordseo="SnapDeal">SnapDeal</keyword>, is closer to cutting a deal with Japan's <a href="http://www.businessinsider.in/softbank-may-pick-up-minority-stake-in-vodafone-india-heres-the-latest-development/articleshow/57306703.cms">SoftBank Corp</a>, its largest shareholder. The deal would be a lifeline to the <a href="http://www.businessinsider.in/snapdeal-has-started-down-sizing-600-employees-have-already-been-fired/articleshow/57343065.cms">struggling</a> Jasper, but could drag its valuation to under $3 billion, down by half. 
 <keyword id="163404" type="COMPANY" weightage="100" keywordseo="Softbank">SoftBank</keyword> is looking forward to an investment of $100-150 million in Jasper, which would be done in parts, three people in the know told ET, while as per another source, the overall investment could be as high as $300 million. 
 
Also read: <a href="http://www.businessinsider.in/nirmalasitharaman-to-investigate-snapdeals-payment-defaults/articleshow/57429327.cms">Nirmala Sitharaman to investigate Snapdeal’s payment defaults</a> 
 
If the transaction takes place, SnapDeal would become the latest top-tier Indian Internet company to cut down its valuation, after cab aggregator Ola and <a href="http://www.businessinsider.in/HSBC-halves-Zomatos-1-billion-valuation/articleshow/52185955.cms">Zomato</a>. 
 
In its last funding round led by Canada's Ontario Teachers' Pension Plan in February 2016, Jasper was valued at $6.5 billion. However, in late 2014 to early 2015, it was valued below $3 billion because of stake sales by shareholders to other investors. 
 
However, industry analysts are of the view that a company raising capital at lower valuations does not necessarily indicate bad times. 
 
"Regardless of valuation, the fact that money is available is a good sign," said Harish HV, partner, India Leadership team, <a href="http://www.businessinsider.in/25-companies-where-interviewing-is-a-treat-not-a-chore/2-grant-thornton/slideshow/55254138.cms">Grant Thornton India</a>. "It means investors, whether new or existing, haven't yet given up on the company and that there is meat left. It's a sign of bullishness." 
 
As per reports, this fresh funding would come with stricter rules regarding financial control. 
 
"Earlier cheques were written after SnapDeal submitted annual operating plans. Now Soft-Bank will ask for SnapDeal's monthly budgets, approve them, and then remit the funds," said one of the aforementioned sources. 
 
In the recent past, SnapDeal, India’s third largest online marketplace after Flipkart and Amazon India, has seen little growth and has been marred by losses, and tremors in upper management. 
 
Also read: <a href="http://www.businessinsider.in/snapdeal-founders-admit-to-wrong-moves-take-100-salary-cut/articleshow/57308448.cms">Snapdeal founders admit to 'wrong moves', take 100% salary cut</a> 
 
(Image source: SatyaVijayi)

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Uber may suspend drivers who have coronavirus and will offer financial help for 14 days

Shona Ghosh,Reuters

Elections 2019: From Angel Tax to better policies, here’s why the city of startups headed out to vote

Sanchita Dash

What went wrong with Uber Eats?

Karuna Sharma

Suzuki just slashed its operating income forecast by 40% citing slower sales in India

Sriram Iyer

Uber's problems in London could be just the start - and investors might not stick around

Neil Wilson

SoftBank’s latest investment in Jasper Infotech might bring its valuation down to half

BI India Bureau