Oyo's business model is looking a lot like WeWork's
asia.nikkei.com
Oyo's business model is looking a lot like WeWork's
1–10 of 64 posts
Re: Oyo's business model is looking a lot like WeWork's
#2Oyo ventured into Nepal quite recently. From my viewpoint I see rooms often can be charged by the hour on some of their signage, not just daily rates. That's the type of visitor they are looking to attract.
Re: Oyo's business model is looking a lot like WeWork's
#3Oyo ventured into Nepal quite recently. From my viewpoint I see rooms often can be charged by the hour on some of their signage, not just daily rates. That's the type of visitor they are looking to attract.
What's wrong with that ?
Re: Oyo's business model is looking a lot like WeWork's
#4Oyo ventured into Nepal quite recently. From my viewpoint I see rooms often can be charged by the hour on some of their signage, not just daily rates. That's the type of visitor they are looking to attract.
They were low end hotels before they bought them. Considering they own the whole property it’s not like this is a big deal like it would be for Airbnb (which is already used extensively for that).
Re: Oyo's business model is looking a lot like WeWork's
#5I was in Houston recently and was surprised to seen an Oyo-branded hotel, as I hadn't realized they'd expanded beyond being an aggregator.
What do you know? 100% of Yelp reviews are 1-star: https://www.yelp.com/biz/oyo-hotel-houston-galleria-west-hou...
To be honest that actually makes them worse than WeWork at some level. WeWork may have an awful business model but at least its brand is (generally) known for consistent quality. [1]
Re: Oyo's business model is looking a lot like WeWork's
#6>SoftBank Group, directly and through its Vision Fund, is heavily invested in both.
This is the worst case scenario. Every company that Softbank tries to unload becomes a liability because of the association.
On the topic of the actual business, I think there's a really basic question people need to ask themselves when they look at these business models: In 10 years time does the industry you're in look different?
Because that seems to be the fundamental problem here, Oyo's business model is basically that in 10 years time nothing about Hotels will have changed. Well what does that mean? It means we know how much the end company will be worth because it'll just be some multiple of a basket of other similar companies that exist today. So here's the question: Why are they claiming to be more valuable than InterContinental Hotels Group whilst having 1/75th of the revenue?
Now onto the financial engineering - overvaluing your company, borrowing using shares as collateral and then investing that money back into the company. That is a feedback loop, if you can't pay back the loan the shares are worthless and so these loans are entirely unsecured. If that's happening at scale, that is exactly the sort of behaviour that will cause a bubble and it will burst. Someone really should do some proper reporting on that - find out how common it is and particularly if it extends outside of Softbank.
Re: Oyo's business model is looking a lot like WeWork's
#7[deleted]
Re: Oyo's business model is looking a lot like WeWork's
#8Re: Oyo's business model is looking a lot like WeWork's
#9Re: Oyo's business model is looking a lot like WeWork's
#10Oyo ventured into Nepal quite recently. From my viewpoint I see rooms often can be charged by the hour on some of their signage, not just daily rates. That's the type of visitor they are looking to attract.
rooms often can be charged by the hour on some of their signage, not just daily rates
I wish we had something like that in Wales. Sometimes after a day in the hills I’d like a hotel room for an hour just to have a shower and change into dry clothes before driving back down the A470. Fellow Welshmen may mock me now, I’ve grown soft from spending too much time in England.