51–60 of 64 posts
This went viral some times back in Indian social-media How Oyo completely ruined my first wedding anniversary: https://oyo-ruined-my-anniversary.com/
As a consumer, the OYO brand means nothing to me because anecdotally it's clear that they only claim to enforce standards but in reality it's an illusion. In the absence of that assurance, what am I getting from OYO? If I want a hotel room I will browse listings on the various aggregators that have them and go with the best find for my budget. Unlike Hyatt or Four Seasons or Taj, where you can treat the brand as an i…
As an idea there is nothing wrong, infact it is brilliant! Not very unlike fast food franchise business, or Coca Cola bottling franchise - corporate puts in standards, best practices, supplies 'secret sauce' (some times literally), invests massively in branding and advertising which would be way out of thinking league of small time owners of the outlets. If this was done purely from problem solving perspective (and n…
>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? Be…
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…
Isn't it undergoing a saturation of sorts as of now? Correct me if I am wrong but the general Indian consumer purchasing power/quality is led by employment in IT sector. What happens if there is a severe downturn in it or there is significant competition from other countries?
> Someone is going to build it.
Definitely but if they see profits and positive cash flow in it which I don't think companies like OYO are looking at.
> You can always ask the established chains in the west and they will tell you how long they think it will take.
This is because there is something called standards and inspection in the US. This is absent in India. One just has to look at the shoddy houses and apartments being constructed by some reputed builders.
> But Reliance Jio did it anyway.
With the full support from the Government I think it would be possible. Also is Jio making a profit? ( https://economictimes.indiatimes.com/industry/telecom/teleco... )
Also would Jio be profitable once they achieve their targets?
>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? Be…
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
Cut the perks to make it a viable business, and you’ll probably end up with...Regus.
Markets are pretty efficient that way.
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.
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).
>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? Be…
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 with you, and I was very bullish on OYO precisely because of this opportunity. However they have executed terribly by really not caring about a quality experience, instead chasing short-term growth.
Looking at Indian social media, OYO's brandname is now associated with a crap experience. It may already be too late, however they could still come out of this by doubling down on customer satisfaction ASAP.
> The textbook on how fast you can scale things is being rewritten
In hospitality, just putting your branded linens into a hotel isn't really "scaling". It's about consistency of experience. And that takes a time and/or a substantial training budget to ensure at least a few people at each site are trained appropriately, and this learning trickles down to every employee/partner.
> 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/...
[1]: https://www.medianama.com/2019/01/223-oyo-real-time-data-sha...
[2]: https://www.huffingtonpost.in/entry/why-oyo-sharing-check-in...