With demand for shared mobility showing no signs of recovery, Bounce, the Bengaluru-based bike-sharing platform has resorted to another round of layoffs. After laying off 130 staff members in June last year, it has now slashed 200 more jobs.
The concerned employees will receive three months’ salary as severance pay and will continue to enjoy medical benefits till 2021.
Even post lifting of lockdown, Bounce had been able to witness merely 35 per cent of total ride-hailing traffic till Nov-December 2020. The Company allows people to rent scooters for up to two years, without having to own them. They offer convenient daily, weekly, monthly plans to suit every pocket.
In the middle of 2020, its workforce strength was more than 600. However, after two rounds of layoffs, the strength has been reduced to about 200.
The Company had plans to pursue multiple mobility solutions, but the way the pandemic affected mobility, it now plans to focus on electric vehicles or two-wheeler mobility.
The move towards a leaner team has been made in the long-term interest of the Company.
Before the pandemic, Bounce was catering about 1.30 lakh rides a day, but the pandemic-related restrictions took a toll. By end of last year, it was reduced to about 35 per cent of rides despite lifting of restrictions and lockdown.
Now, the Company plans to focus on creating a fleet of electric vehicles only, by the third quarter. It is working towards adding over 10,000 electric two-wheelers. It already obtained permissions for the launch of its retrofitted electric scooter in November last year.