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Oyo's business model is looking a lot like WeWork's

asia.nikkei.com

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Re: Oyo's business model is looking a lot like WeWork's

#41

Post by puranjay »

leoedin wrote: post #23

Oyo are aggressively expanding. When I was in Nepal earlier this year they had OYO branded hotels everywhere. Since then they seem to have started taking over the super-budget hotels in London. I assume it's mostly the same hotels, but they've been paid to slap an OYO sign on the front. It's hard to see what actual additional value they bring though. They're not really a stamp of quality, and they're not generally op…

The problem with Oyo, and its virtually most people who've used it (me included) will concur, is that the Oyo brand itself is tainted. Experiences are extremely inconsistent and the quality is all over the place. Hotels keep withdrawing from the Oyo platform because of non-payment of dues. Oyo's customer service is shoddy.

This business should have been built slowly and carefully. But Softbank's billions meant that they expanded so fast and so soon that they had no quality control in place.

It's a brilliant idea that would have been inevitably successful. But all that money is going to be its downfall.

Re: Oyo's business model is looking a lot like WeWork's

#42

Post by puranjay »

mav3rick wrote: post #24
ryanlol wrote: post #12

Earlier quoted context omitted.

Nothing, some prudes just don’t want to stay in hotels where other people have sex. Odds are that the hourly-rate rooms would be on a different floor than the daily-rate floors for logistical reasons, which makes it even harder for me to see any problem with this. There’s significant a cultural difference here too, in the areas where Oyo primarily operates young couples need these rooms just as much as prostitutes.

So true about the young couples bit. Look up "Stay Uncle".

They were on sale at Flippa a while back:

https://blog.flippa.com/flippa-seller-showcase-stay-uncle/

Re: Oyo's business model is looking a lot like WeWork's

#43

Post by puranjay »

anon8123DF wrote: post #5

I 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 consist…

The WeWork I work out of in Gurgaon, India, has the best coworking space I've ever used. They charge a big premium over other spaces but I'm happy to pay it.

WeWork, I feel is a very viable business. Its obituaries are too premature. It doesn't warrant its $47B valuation, but it can easily displace Regus. Easily a $10B business, if not a $50B one. Which is incredible in itself

Re: Oyo's business model is looking a lot like WeWork's

#44

Post by CaptainZapp »

puranjay wrote: post #40
9nGQluzmnq3M wrote: post #11

> For its core India business for the financial year 2018, Oyo reported revenues of just $61 million and a loss of $53 million. How on earth does this translate into a $10 billion valuation? For comparison, Hyatt's market cap is $7.9B, and they made $296M profit on $1,215M in revenue in Q3 : https://s2.q4cdn.com/278413729/files/doc_financials/2019/q3/...

Hyatt should just call itself a tech company and increase its valuation 10x

And add Blockchain to the name for an additional 50x valuation.

Re: Oyo's business model is looking a lot like WeWork's

#45

Post by CaptainZapp »

goatinaboat wrote: post #10
beilabs wrote: post #2

Oyo 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.

Check with local hotels.

Hotels (alas mostly the business oriented ones) absolutely rent day rooms at reasonable prices if they have stock available.

Just ask around.

Re: Oyo's business model is looking a lot like WeWork's

#46

Post by billfruit »

leoedin wrote: post #23

Oyo are aggressively expanding. When I was in Nepal earlier this year they had OYO branded hotels everywhere. Since then they seem to have started taking over the super-budget hotels in London. I assume it's mostly the same hotels, but they've been paid to slap an OYO sign on the front. It's hard to see what actual additional value they bring though. They're not really a stamp of quality, and they're not generally op…

They(Oyo) seem to an aiming it's focus for the convenience of booking/cancelling/payment s through their app, over everything else, and their app seems decent and focused to that end. That might appeal to many consumers especially in India, where the experience of booking a hotel stay in small and medium hotels is a terrible experience mostly, 8f you tried to do it your self, case in point the hotels in Pahargunj area in New Delhi.

Re: Oyo's business model is looking a lot like WeWork's

#47

Post by CaptainZapp »

lotsofpulp wrote: post #34
ryanlol wrote: post #12

Earlier quoted context omitted.

Nothing, some prudes just don’t want to stay in hotels where other people have sex. Odds are that the hourly-rate rooms would be on a different floor than the daily-rate floors for logistical reasons, which makes it even harder for me to see any problem with this. There’s significant a cultural difference here too, in the areas where Oyo primarily operates young couples need these rooms just as much as prostitutes.

> Nothing, some prudes just don’t want to stay in hotels where other people have sex. What you write may be true for Asia, but if you’re from the US, it makes sense to be wary of hotels offering hourly prices since it attracts a clientele that reduces the quality of life at the hotel. It’s not about being a prude, it’s the fact that hotels frequented by pimps, hookers, and drug dealers offer a less desireable experie…

What you write may be true for Asia, but if you’re from the US, it makes sense to be wary of hotels offering hourly prices since it attracts a clientele that reduces the quality of life at the hotel.

After having a neighbor who thought it's a good idea to turn her rented appartment into an illegal hotel I'd say exactly the same thing, regarding quality of life, about Airbnb.

Re: Oyo's business model is looking a lot like WeWork's

#48

Post by madamelic »

achow wrote: post #30
hos234 wrote: post #27

Earlier quoted context omitted.

OYO is India based unlike WeWork and given what Reliance Jio pulled off and the cash they raised to do it, I feel the context is different. Travel along an Indian highway and try to find your standard roadside motel as you would in US ala Best Western. There are no low-mid tier chains. What OYO is promising is scale. What Best Western took 50 years to do these guys want to do in 5 or 2 idk. It's a worthwhile bet give…

I agree to your analysis of India the underserved market as far as travel & tourism for middle class is concerned. This would have been all good if the focus was only for that market, but the $10Billion valuation I'm sure is not because of India focus.. it is for claiming to be 2nd or 3rd largest owner of hotel rooms in the world - the problem is there. Without solving fully by hyper focusing on one problem/segment/m…

>it decided to conquer the world because of $$ at disposal.

Injecting $ in to a donkey in the hopes it will become a unicorn.

Not all growth is good, some growth is cancer... and it sounds like OYO is basically stage 3.

Re: Oyo's business model is looking a lot like WeWork's

#49

Post by TwoHeadedBeast »

goatinaboat wrote: post #10
beilabs wrote: post #2

Oyo 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.

I was driving from Berlin to Skopje once, and at one point really needed a rest, having not found a hotel in Austria. In Croatia, I did find a place that I could rent a room for 4 hours so I could have a shower and a nap before continuing my journey.

Re: Oyo's business model is looking a lot like WeWork's

#50

Post by oefrha »

CaptainZapp wrote: post #44
puranjay wrote: post #40

Earlier quoted context omitted.

Hyatt should just call itself a tech company and increase its valuation 10x

And add Blockchain to the name for an additional 50x valuation.

“Iced tea company rebrands as “Long Blockchain” and stock price triples.”

https://arstechnica.com/tech-policy/2017/12/iced-tea-company...

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