Logistics company GoJavas has shut down its operations citing technical issues, reports Mint. However, a report from the Economic Times points out that operations were suspended as the company is considering an organizational overhaul which will involve layoffs at the company. GoJavas is planning to shift to a franchisee model wherein it would provide technology to logistics partners that it onboards, the report added. It is also considering a variable salary model based on a packet or kilograms delivered and a fixed salary component. This move becomes significant as ecommerce company Snapdeal is in talks with GoJavas to acquire it. Snapdeal currently owns 42% in the company after it invested $20 million in October 2015. It had also picked up a minority stake in March 2015 as part of a strategic partnership. Note that Snapdeal recently opened six new fulfillment centres under its logistics company Vulcan Express. Vulcan, which also operates on a franchisee model, has 69 logistics hubs in the country where it leases out space to third parties and manages them. But as of now, Vulcan owns 10 logistics centres entirely. GoJavas began as Rocket Internet-backed online fashion store Jabong’s third-party logistics service called JaVAS (Jabong Value Added Services) in December 2012. However, it was later sold to Gurgaon-based QuickDel Logistics in February last year and rebranded to Gojavas. Jabong is currently listed as a client of Gojavas, along with Paytm, HealthKart, Hindustan Unilever, LensKart, YepMe, Juvalia&You, Avon, Forever21 and Provogue. Conflict of interest related to Jabong Last month, a report by The…
