In this week’s wrapup we talk about a floor price for Telcos, e-waste, the crackdown on Chinese tech companies, an IPO frenzy, and the tussle between NRAI and food delivery apps.
Why telcos want a floor price?
Shares of Vodafone Idea Ltd (VI) slumped more than 10% after they announced they lost ₹7,000 crores between January and March 2021. But that’s not all. Their gross revenue is on the decline. The average revenue per user dropped from ₹121 to ₹107. And people aren’t sure if the company can continue to pay its debts considering they already owe the government a king’s ransom (after the AGR ruling). Even its auditors were not sure if the company would continue existing, without raising new funds or mending its way. So once again that attention shifted to telecom industry’s long-standing demand for a “floor price”. And you should definitely check out our Monday Newsletter to know more about this intriguing proposal.
Dealing with e-waste
Electronic waste is piling up. Old phones, cameras, TVs, computers — discarded products made of plastic and toxic compounds. It’s piling up across the globe, including India. And not only is dealing with this stuff a dangerous affair, there are systemic issues that aid the accumulation of electronic junk. So, we devoted Tuesday’s Newsletter to examine how governments and corporations can deal with the problem of e-waste.
Why China is attacking its own companies?
A few days after its US IPO, Chinese regulators forced Didi Chuxing - the largest ride-hailing company in China - off of all the app stores in China. Then they forced Didi to stop enrolling new customers. And while the official line from the Communist party seems to suggest that Didi may have illegally collected and utilized Chinese users’ personal data, it's hard to believe this narrative when you consider they have been cracking the whip on a few other homegrown tech companies as well.
And so if you're wondering why what China may be up to this time around you should check out the Wednesday Newsletter.
Why new-age Indian businesses are finally going public
Zomato, Nykaa, PayTM, Delhivery — They’re all gearing up to go public. It’s almost as if the Indian startup ecosystem met at once and decided this was the most opportune moment to IPO in India.
But why? And Why now?
Well, we can’t say for sure. But we thought we could speculate on the matter at least. And so we did exactly that and maybe a little bit of old fashioned analysis. Check out our Thursday Newsletter to learn more.
NRAI vs Zomato and Swiggy
NRAI thinks food aggregators are rigging the system. They argue that that the likes of Zomato and Swiggy prioritize their own self-interest while ignoring the plight of restaurants. They allege that food aggregators compel restaurants to participate in massive discount schemes and indirectly hurt their prospects. In all, the NRAI believes the behaviour of food delivery apps is patently unfair and even anti-consumer perhaps. So in this story, we examined the viewpoints of both parties in hopes of understanding the issue at hand. You can read more about it here.