Wolt, a popular food delivery company in Israel, is facing a tax investigation for allegedly defrauding the government of NIS 33.5 million.
The Times of Israel is quoting Wolt, responding to serious claims and vehemently denying wrongdoing. Wolt also claims it “adheres to strict international standards.”
It is now working with the authorities to assist with the probe.
The company does not employ drivers, and as gig workers, they choose how much work they want to take on and when they want to work.
It’s further reported that the company’s Israeli COO, Eliya Ohad Yosefyan, was briefly detained and released with strict regulations. Yosefyan is accused of reportedly faking invoices from a company named TBO to evade taxes.
Stephan Soroka, a renowned food delivery expert, reports that Wolt may have embezzled NIS 230 million, which helped to write off NIS 33.5 million.
Wolt not alone in tax spotlight
In April, Uber Technologies and over 60 other premises were raided by Portuguese public prosecutors, reports Bloomberg. Authorities probed a $30 million tax fraud claim, allegedly carried out by fleet firms, which delivered food by using a digital platform.
It’s reported that there is evidence that delivery fleet firms submitted fake invoices that didn’t correspond with the service provided.
However, Uber confirmed it’s not the “targeted entity” and is collaborating with authorities.
Wolt analyzes its market
Wolt CEO Miki Kuusi, also head of DoorDash International, addressed an industry event, Shoptalk Europe, last week. He didn’t shed any light on the tax allegations; however, he has spoken about consumer behavior lately.
- The country loses out on money when customers order overseas. This results from many cities only offering certain products in-store and not online.
- Consumers want convenience, affordability, and selection.
- Online businesses have great opportunities, but many European companies still have to learn.
Wolt also claims, “ultra delivery is not as important as many would have thought a few years back.” The food delivery platform believes 30 minutes is the perfect delivery time, but after 45 minutes, you risk losing customers.
About the author
Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
