News Analysis 1

Online Guided Tours Business Model Problems

Indian company SeekSherpa is now providing guided tours of Indian market places with by utilizing an online service strategy for sourcing customers and connecting them with tour guides by way of the internet. This market likely emerged in response to a parallel web based online business model of the popular Uber Company rape scandals. Essentially the online guide services are using un-vetted brokers that source the guides used in the service. These brokers are acting as the middle man between the customer and the tour guides. The business model claims to be safe in that they are operating in a public space but skeptics insist that regulation must be implemented to ensure safety of customers and guides alike in the wake of recent scandals. 

The online guide service follows the same online model as Uber and now faces shut down by the Indian government based on the alleged rape charges brought against several Uber drivers where the Indian Government indeed banned all online taxi service firms. No action has been made toward the Online Guide services of SeekSherpa to date however speculation as to whether they will or should is now being raised. Without government oversight of how customers can be guaranteed their safety in the use of this kind of service then additional bans could be put in place for this and future businesses working under the same online models. Uber has also been accused of using what are called burner phones so that drivers cannot be traced or investigated and thereby protecting the guilty. Accountability is simply diminished with activities such as these. If guide services are not regulated than the potential for future criminal activity is wide open.

For now the action to do nothing is being looked at closely by the company’s founders. The regulatory body of the Indian government is who would actually make the final action to stop these businesses from operating. The Company believes the ministry of tourism will not find any issues with the service rather it will be a boon to more business in the region. Regulatory issues like this can be difficult to overcome for start-up businesses but they must overcome these issues or the company and or model will fail thereby potentially affecting multiple segments of the economy. Providing a safe service is the ultimate issue for customers as well as the prosperity of the economy.

SeekSherpa could certainly do a better job of explaining how they operate and how it is safe in its service practices as compared to the Uber Company, this would differentiate the SeekSherpa from any ill perception prior to regulatory issues potentially being raised. By conducting a risk-based human rights due diligence study of all of the company’s activities as well as review of relationships would likely mitigate issues arising from perpetrators of criminal activities within the organization as well as possible customers seeking to harm guides as the inverse. This would be an act of best practices or due diligence and would allow the organization to be traceable in its operational functions and procedures showing a history of data and information that would also cover them from potential future accusations or investigations.

The issue to date has not been resolved but could potentially be facing a ban in the future as it is similar to the Uber case however from the outside looking in and knowing the history of continuous controversy around the operational strategy of Uber, these guided tour services could learn a quick lesson in how not to operate.

References

BBC News Business (8 January 2015). Are India's 'Uber for tour guides' on the right track? http://www.bbc.com/news/business-30716530