Stay order issued by Delhi High Court over Zostel’s ZoRooms

eerterte

Uh-oh.

Zostel, the backpacker’s hostel startup chain which recently launched a concept named ZoRooms, is currently under fire for allegedly copying the concept of OyoRooms.

The alleged copying of data and confidential information led to OyoRooms to file a case against ZoRooms.

OyoRooms produced e-mails and CCTV footages to prove that their former employees stole the software and then apparently left OyoRooms to join Zostel. The employees have been made a party in the case as well.

In response to the case, the Delhi High Court has issued a stay order on ZoRooms for using confidential data and information of OyoRooms.

Of course, Zostel denied the allegation, claiming that the step taken by OyoRooms is merely out of business rivalry and that there is no truth to the story at all.

Still, the High Court barred Zostel from using ‘confidential information and software’ of OyoRooms.

OyoRooms has also sent out a much-needed statement, reminding all the budding entrepreneurs that business should be carried out on moral grounds with sound business ethics.

But how is the ZoRooms similar to the OyoRooms?

Well, not only do they look similar, they also look the same. Although it can be argued that ZoRooms is more technology-driven than OyoRooms, considering the convenience its portal offers.

Still, here’s to hoping that the battle between the two budget hotel aggregators ends amicably.

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