The companies are also working on the idea of cutting down one-floor, consolidating offices and closing regional units, among other measures, to reduce long-term fixed asset costs.
Big and mid-stage startups along with nationwide lockdown, top ride-hailing, food delivery and hospitality companies are facing serious business losses, renegotiating real estate deals, and company officials and real estate developers in a bid to cut costs by up to a third.
Oyo, PayTM, Ola, Swiggy, Zomato and Uber have reached out to builders to renegotiate pan-India rental agreements, renewal terms and rent increases.
The companies are also working on the idea of cutting down one-floor, consolidating offices and closing regional units, among other measures, to reduce long-term fixed asset costs.
“Covid-19 has impacted the use of commercial real estate… .We are no exception. Flexible collegiality and home-Office are a model for the future, at least in the short to medium term, ”said an Oyo spokesperson, confirming that the real estate major is in talks with landlords nationwide to agree on terms. These conversations are also taking place at growth-stage businesses of between 50 and 150 people, such as bike rental company Bounce, people said.
"The Covid-19 pandemic has hurt revenue for so many startups. They now have to go back and re-evaluate their runway. Discussions were held, ”said a senior executive at one of the companies previously quoted.
The final forms of such contracts and if they are successful, will depend on a number of factors, such as lock-in periods, key terms, and the overall financial position of the builders.
Big and mid-stage startups along with nationwide lockdown, top ride-hailing, food delivery and hospitality companies are facing serious business losses, renegotiating real estate deals, and company officials and real estate developers in a bid to cut costs by up to a third.
Oyo, PayTM, Ola, Swiggy, Zomato and Uber have reached out to builders to renegotiate pan-India rental agreements, renewal terms and rent increases.
The companies are also working on the idea of cutting down one-floor, consolidating offices and closing regional units, among other measures, to reduce long-term fixed asset costs.
“Covid-19 has impacted the use of commercial real estate… .We are no exception. Flexible collegiality and home-Office are a model for the future, at least in the short to medium term, ”said an Oyo spokesperson, confirming that the real estate major is in talks with landlords nationwide to agree on terms. These conversations are also taking place at growth-stage businesses of between 50 and 150 people, such as bike rental company Bounce, people said.
"The Covid-19 pandemic has hurt revenue for so many startups. They now have to go back and re-evaluate their runway. Discussions were held, ”said a senior executive at one of the companies previously quoted.
The final forms of such contracts and if they are successful, will depend on a number of factors, such as lock-in periods, key terms, and the overall financial position of the builders.
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