Andhra invites BlackBuck firm after its plan to exit potholed Bengaluru ORR stretch
The firm’s decision has sparked discussions in the IT-BT sector, with several IT industry stalwarts, including Mohandas Pai and Kiran Mazumdar-Shaw, expressing their dissatisfaction with the government’s poor infrastructure management
Fed up with the problems of traffic congestion and potholes in Bengaluru, a city-based logistics tech company, BlackBuck, has decided to relocate its office elsewhere from the city’s Outer Ring Road (ORR).
The firm’s decision has sparked discussions in the IT-BT sector, with several IT industry stalwarts, including Mohandas Pai and Kiran Mazumdar-Shaw, expressing their dissatisfaction with the government’s poor infrastructure management.
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"Big big failure of governance in Bengaluru. Minister D K Shivakumar please see, cos are moving out of ORR. Situation beyond hope. Please intervene (sic)," Pai wrote on X.
However, amid all the discussion on Bengaluru’s bad roads, BlackBuck company issued a clarification that it is not moving out of Bengaluru but is looking for a new office space out of Bellandur. “We are just moving out of the Bellandur location, not out of Bengaluru. No question of moving out of the city. We are looking for an alternative option in Bengaluru,” the company’s corporate team said in a statement.
Neighbouring states’ invitations
Neighbouring states Andhra Pradesh, Telangana, Kerala, and Tamil Nadu are rolling out the red carpet to capitalise on the frustration of companies facing Bengaluru’s pothole-ridden roads and traffic gridlocks. IT leaders argue that BlackBuck’s announcement to leave Bengaluru is a clear mirror of the city administration’s failure.
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Expressing concern over BlackBuck’s move, Biocon chief Kiran Mazumdar-Shaw posted on X (formerly Twitter) that this is a serious issue and urged the state government to fix the problems immediately.
She tagged Karnataka Deputy Chief Minister DK Shivakumar, and wrote, “This is serious. Emergency measures needed to fix these issues (sic).”
What did BlackBuck’s CEO say?
BlackBuck CEO and co-founder Rajesh Kumar Yabaji posted on X that the company has decided to exit Bengaluru, listing several reasons for the move.
He wrote that pothole-ridden roads, extreme dust, and heavy traffic meant employees were spending an average of over 90 minutes one way commuting to office. He added that the situation did not appear likely to improve even in the next five years.
Yabaji, who has lived and worked in Bellandur, Bengaluru, for the past nine years, said: “ORR (Bellandur) has been our ‘office + home’ for the last 9 years. But it’s now very, very hard to continue here (heartbroken emoji). We have decided to move out. Background: - Average commute for my colleagues shot up to 1.5+ hrs (one way) - Roads full of potholes & dust, coupled with lowest…”
BlackBuck has a total market valuation of over Rs 10,900 crore. Operating since 2015 under the name Zinka Logistics Solutions, it has become one of India’s prominent digital logistics firms.
Karnataka vs Andhra Pradesh: A new challenge
Recently, the Karnataka government under Chief Minister Siddaramaiah withdrew the process of land acquisition near Devanahalli for aerospace projects, following farmer protests and demands for fair compensation.
Seizing the opportunity, the Andhra Pradesh government invited aerospace companies to invest in its state. Andhra Pradesh Industries Minister Nara Lokesh openly pitched his state as an alternative, pointing out the confusion over land acquisition in Bengaluru’s outskirts.
He posted on X: “Why shouldn’t aerospace industries come to Andhra Pradesh?” and assured investors that his state had 8,000 acres of land ready for aerospace projects. He also promised industry-friendly policies, better infrastructure, and opportunities for companies willing to set up shop there.
Now, with BlackBuck deciding to exit Bengaluru, Lokesh has extended an invitation to the company to relocate to his state.
“Hi Rajesh, can I interest you in relocating your company to Vizag? We are rated among top 5 cleanest cities in India, are building best-in-class infra, and have been rated the safest city for women. Please send me a DM,” he wrote.
(This article was originally published in The Federal Karnataka)