Yes, India’s startup scene is currently witnessing what can only be called “rush hour”. Yes, everyone and his cousin seems to have a startup idea, and is on his way to get funded. Yes, the co founders of Flipkart and Snapdeal have become the poster boys of the new economy. Yes, Uber’s valuation of $50 Bn puts it ahead of General Motors’ market cap by $4 Bn, today!

But, there is a dark side of startups that we don’t seem to want to talk about…

Rahul Yadav – CEO of Housing.com – was sacked by the Board, and more than 160 employees were let go recently. Ola and ZopNow have faced “hacks” by users being able to recharge their wallets without paying real money. Foodpanda recently features in the news for accepting orders from restaurants that have long been shut down, and other operational woes.

The story is not limited to these well-known names. This is an issue that affects many, many startups. The fact is that a few boys (or men) writing code, does not a business make. Building an organization requires a tremendous amount of skill sets, and not every one is suited for the task, regardless of how noble their intent is.

This is not a post meant to discourage folks from quitting their jobs and forming a startup, nor is it meant to feed the paranoia of those of us who ‘never use their credit cards online’, or dissuade young aspirants from seeking employment in other startups. It’s all of that, and more.

We play a variety of roles in this ecosystem. We are customers, employees, partners, co-founders and vendors to this brave, new world of startups. The old adage – caveat emptor – applies in its true spirit.

There will always be those among us who wish to ‘game the system’, or hack their way into disproportionate gains, or (as founders) just be ill-equipped to predict what lies ahead and end-up not delivering on objectives as intended. The way things used to work is no longer the way they do. And, the fact is that there just aren’t enough checks and balances built into the ecosystem to prevent such fiascos in the future.

As Peter Parker once said in Spiderman, “With great power, comes great responsibility.”

The Internet is a democratic force to reckon with. But, the responsibility lies with us to watch out for the perils on the path ahead, and take appropriate measures. Whatever role we play in this – employee, vendor, customer – it is up to us to figure out what the risks are, and safeguard against them.

The Uber model allows a driver to earn up to Rs. 100,000 a month in earnings, but it helps if he understood that he has no control over the ‘Rate per Kilometer’ charged to clients, and that the demand for rides may not always last. The young man with his motorcycle, eager to join an e-commerce giant as a delivery boy, can surely dream of a brighter future, but it helps to know that the company can run out of funding if it does not operate with prudence. The customer can be overjoyed on finding his favorite local eatery on an ordering app, but also face disappointment two hours later when he finds out that his order was not sent through at all!

No, the answer does not lie in locking up your credit card, disconnecting the Internet, or refusing to participate in any manner. We will, however, need to improve our understanding of the “new world order”, if we want to use these ‘developments’ to our advantage.

We are living in exciting times – there is no doubt about it. Just keep an eye out for the dangers, while you’re out cruising on the information superhighway…