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Oyo the the Risk-Stays-on-the-Books Model

by
Byrne Hobart
The Diff
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Oyo’s business model:

  • Offers both hotel chains and “third-party lodgings”, which is the best of both worlds (North American primarily operates in chains, while the rest of the world uses independent lodging)
  • There are two ways companies take advantage the “two-sided market” of hotels and travelers
  • Build a chain out of these hotels (or you could also get individual hotels onto one program)
  • Build an online travel agency that is the go between for hotels and travelers
  • Oyo has wedged itself in between. Partly a hotel chain and partly an OTA
  • They demand hotels on their platform have a certain level of standards.
  • They can offer chain type benefits.
  • Their next target is India where growth is expected.

“Elsewhere”

  • Major chip company TSMC is creating metrics to decide which customers need product or not. Otherwise only certain areas of manufacturing will get chips and we will end up with no finished goods.
  • Apple game profits exceed the combined profits of major game companies. Why? Apps attract developers and these kinds of games are great in-app purchase generators (people get hooked and want to buy in).
  • China is wrestling with questions around AI. It seems that the current thought is you should be able to “opt out” of interacting with AI in a service. But this could mean a less optimal experience.
  • Big Pharma is rolling out new COVID therapies (like an “antiviral pill”). As we struggle for a true solution, there seems to be financial gain to be made in “temporary stopgap[s]”
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