The only thing harder than writing is not writing.
Summary:
Bodega, a tech company started by two former Google employees that’s already accrued $2.5 million in venture capital financing and opened as many as 30 ‘stores’ in the San Francisco area, places vending machines within apartment buildings and offices. Using your credit card and connected app, you can access these cabinets filled with nonperishable items, where a camera will scan and automatically charge you for items you pick up. However, Latin Americans find the use of the word “bodega” offensive, as well as the implication that this new service will replace family-owned corner stores across the country.
This controversy came right off the heels of the Google memo, when one Google employee called diversity into question and was subsequently fired. In similar suit, when initially asked by Fast Company, Bodega founder Paul McDonald stated that he “wasn’t particularly concerned” about what the response from Hispanic Americans would be to the name, though he changed his tone after the uproar against Bodega on social media and in the news.
On September 13th, Paul McDonald, apologized in a post on Medium.com. He explained that his intention wasn’t to put the corner store out of business, saying, “We want to bring commerce to places where commerce currently doesn’t exist. Rather than take away jobs, we hope Bodega will help create them.” He also explained the onus of naming his app ‘Bodega,’ saying, “We did some homework — speaking to New Yorkers, branding people, and even running some survey work asking about the name and any potential offense it might cause.” Though we don’t know what market research was done in testing the name, he followed up with this statement: “But it’s clear that we may not have been asking the right questions of the right people.”
Reaction:
According to Latino USA on NPR, Bodega is loosely translated from Spanish for wine-cellar or the hold of a ship. However, it’s become ubiquitous with the family owned corner stores that populate urban areas, usually started by immigrants. A stereotypical New Yorker usually defines his identity by knowing the name of the cat that frequents his local bodega. As immigrants, bodega owners face many challenges–everything from overhead to ICE.
The response to McDonald’s apology has been met with great cynicism. Mentions of the company escalated quickly–so did negative sentiment. Frank Garcia, chairman of the National Association of Latino Chambers of Commerce is quoted as saying, “The ‘bodega’ name is a very important name in the Puerto Rican and Hispanic community. It has always been a house for immigrants to buy in. With all of the anti-immigrant issues, I think using the name 'Bodega’ is an issue.”
Many questions remain unanswered. Did the founders of Bodega actually do any research into their name? Will they change their name? Their failure to communicate since their apology has left a lot of consumers wondering if they’re already finished. With articles still coming out accusing Bodega of trying to close corner stores, it appears that there is no resolution in sight for the company.
Page Principles:
Prove it with action. It’s one thing to apologize, but if you need to change what you’re doing wrong. Though consumers can appreciate their explanation of why they named their app “Bodega,” the apology falls on deaf ears unless you do something about it.
Listen to Stakeholders. Bodega (the app) certainly heard the outcry in social media and in the news, but failed to address their central issues. Since their apology, the dialogue has been one-way–not the conversation that they need to have toward creating a more appropriately named app.
Realize that an enterprise’s true character is expressed by its people. Admitting error takes a lot of guts, but the apology seems insincere. Even though Paul’s partner, Ashwath Rajan, is Southeast Asian, Bodega appears to be yet another example of white privilege, and of Silicon Valley taking away employment opportunity.
References:
S. (2017, September 22). Bodega. The Story That Just Won’t Go Away. Retrieved September 27, 2017, from http://newscenter.io/2017/09/bodega-story-just-wont-go-away/
A Day at the Bodega. (2017, September 19). Retrieved September 27, 2017, from http://latinousa.org/2015/02/20/1508-a-day-in-the-bodega/
Jaeger, M. (2017, September 13). This startup wants to kill your bodega. Retrieved September 27, 2017, from http://nypost.com/2017/09/13/this-startup-wants-to-kill-your-bodega/
Levine, D. S. (2017, September 13). Paul McDonald & Ashwath Rajan, Bodega Founders: 5 Fast Facts You Need to Know. Retrieved September 27, 2017, from http://heavy.com/news/2017/09/paul-mcdonald-ashwath-rajan-bodega-founders-google/
McDonald, P. (2017, September 13). So, about our name… – Bodega Blog. Retrieved September 27, 2017, from https://blog.bodega.ai/so-about-our-name-aa5bff63a92d
Montag, A. (2017, September 13). Former Google employee apologizes for sparking rage with a 'Bodega’ app. Retrieved September 27, 2017, from https://www.cnbc.com/2017/09/13/former-google-employees-spark-backlash-with-a-bodega-app.html
Segran, E. (2017, September 13). Two Ex-Googlers Want To Make Bodegas And Mom-And-Pop Corner Stores Obsolete. Retrieved September 27, 2017, from https://www.fastcompany.com/40466047/two-ex-googlers-want-to-make-bodegas-and-mom-and-pop-corner-stores-obsolete
Yaverbaum, E. (2017, September 19). Bodega: When Branding Goes Bad. Retrieved September 27, 2017, from http://www.huffingtonpost.com/entry/bodega-when-branding-goes-bad_us_59c14d8be4b082fd4205ba23