OYO Gets New CEO And Merger To Boost Its Business In Japan

Must Read

Windfall! Online Grocery Market In India Looks Set For Purple Patch Ahead

Silver linings are clearly in short supply in the pandemic fuelled world that we have come to...

Apple Store In India: More Of Disappointment Than Excitement?

Apple has started making moves to strengthen its presence in India. With the launch of Apple online...

Can Tata Super App, With the Backing of Walmart, Take On JioMart?

In August, Tata Group, in a move to likely counter the offerings of the Jio umbrella, declared...

The hospitality industry has been one of the worst-hit due to COVID-19. The pandemic left the sector heavily crippled and forced many businesses to take some really tough decisions. OYO is no exception!

It is reported that the Indian-origin unicorn OYO is also headed down a similar path as all of their Japan entities is set to merge under a single consolidation.

As the COVID-19 pandemic forced people to quarantine themselves at home, business slumped to a huge extent for OYO both at home and in foreign companies such as Japan. Thus, in order to survive and keep their operations running, the Masayoshi Son’s SoftBank Group-backed OYO will be reorganizing their operations in Japan which will be headed by a newly appointed Chief Executive Officer.

Advertisements

OYO has planned to restructure its hotel-booking aka OYO Hotels and apartment-rental units aka OYO Life under a single banner and company which will be called OYO Japan. It will be spearheaded by Ryoma Yamamoto as the CEO with Ryota Tanozaki who will be acting as his deputy. Both of these individuals have been serving in existing roles under OYO operations and they have now been promoted to senior roles.

The Indian-origin hospitality startup unicorn was able to easily expand to Japan which has now become one of its major focal points, all thanks to Mayoshi Son’s association with the brand of SoftBank.

It launched in Japan in April 2019 via OYO Life which is a rental service for furnished apartments that aimed to remove the hassle of guarantors and security deposits. Yahoo!, finding it promising, ended up buying a 30% stake in the company’s Japan entity, however, within eight months, sold it back to OYO and cancelled the joint venture.

The company announced that they were hoping to expand very aggressively but the onset of COVID-19 ultimately ended up thwarting their efforts.

By the end of June, the startup was observed to be laying off their employees from its regional offices in Japan. They started closing offices in provincial centres such as Sapporo, Sendai, Nagano, Hiroshima and Omiya.

Advertisements

At that point in time, the Chief Business Officer for OYO Hotels made a statement wherein he stated that the company was also looking forward to significantly downsize its operations in the Tokyo headquarters which occupied two entire floors in an office building and was situated at a walking distance from the Imperial Palace. He also added that the moves were a part of OYO’s overall ongoing effort to downsize internationally and adapt to much smaller tourism industry.

The current leader of OYO Hotels’ Japan division Prasun Choudhary will step down and resign after which Yamamoto, who oversaw OYO Life, will assume responsibility for the merged business.

A spokesperson from OYO commenting on this situation has said that OYO believes that it is high time they merge their operational capabilities and technology that have been built by their teams in Japan. The company also believes that integrating both arms of their businesses in Japan will lead to strengthening their overall value proposition for their asset partners as well as guests.

Furthermore, the spokesperson added that the OYO team in Japan has built technologies which include an instant home leasing platform, local revenue partner integrations, on-demand cleaning services, real estate services vendor network, dynamic pricing engine, and many more.

Overall, OYO is caught in rough weather due to the worldwide spread of Coronavirus that has bought the complete hospitality industry to a complete standstill. In the last few months, the company has either offered salary furloughed or laid off thousands of employees in a bid to cut expenses.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

From Credit Card Transactions To Online Shopping: New Charges Applicable From Today

As we step into the month of October, just three months away from 2021, the Indian Government...

Why Is Access Dots Touted As A Must Install App for All Android Smartphone Users

Are you an Android user and missing some of the much-needed security features that iOS 14 users have been enjoying now? You...

₹90 Crore Per Hour: That’s What Mukesh Ambani Added To His Wealth During COVID Era

Today the "IIFL Wealth Hurun India Rich List 2020" was released and guess who kept maintained his position at the top for...

Can Tata Super App, With the Backing of Walmart, Take On JioMart?

In August, Tata Group, in a move to likely counter the offerings of the Jio umbrella, declared that they are in the...

The Raining Discounts Are Coming As Flipkart And Amazon Gears Up For Festive Season Sale

The festival season is about to begin and eCommerce majors in India Amazon and Flipkart are aiming to make the most of...

Amazon, Google And Microsoft Are Extreme Angry With TRAI

The big three of the tech industry - Amazon, Microsoft And Google - seems to be quite annoyed. Cloud...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This