> a good idea which is supposed to manage both demand and supply issue was what helped Oyo grow
What was the good idea? As far as I can see, it was a ploy to try and get into the hotel business without the hard stuff, like capital expenditures, training employees, checking quality of hotels, etc.
> ..training employees, checking quality of hotels, etc.
This was the good idea. Lot of hotels everywhere and especially in developing countries in non-metro areas are owner managed, who may not be always at the cutting edge of hospitality industry's best practices.
For a 30% share of revenue if a startup can provide the above service at a scale and across different towns, make these small hotels discoverable and manageable online; then it is a GEEAT idea.
There is no way anyone can do that and produce the returns demanded by SoftBank, so from the beginning Oyo was a farce. Not to mention how ridiculous it is to think a 20 year old with no experience was going to create in a matter of years the work culture and organization and best practices and supply chains that took decades to build for the established brands.
And the established brands do it for, at most, a 15% share of revenue. The Oyo hotels I saw wouldn’t even be qualified to be proper hotels simply based on their build quality.
What was the good idea? As far as I can see, it was a ploy to try and get into the hotel business without the hard stuff, like capital expenditures, training employees, checking quality of hotels, etc.