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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
Two orders this past week prove that history is not going to be kind to OYO. Plus, MakeMyTrip was due for a comeuppance too.
Editor's note: Let’s begin this story with the interim order of the Competition Commission of India, or CCI, because I think it is both urgent and damning. About three years back, two hotel franchise companies, Treebo and FabHotels, approached the competition watchdog with the complaint that MakeMyTrip had abused its dominant position in the online travel aggregator business and urged CCI to intervene and deliver justice. Much hoopla and drama unfolded. CCI first commissioned a study and found that MMT was indeed a dominant player in the online travel aggregator business in India and then launched an investigation into the matter. Treebo and FabHotels’ grouse actually dates back to 2018 when MMT entered into a clever but controversial contract with OYO. In exchange for listing OYO’s properties, the company said it would oust properties of Treebo and FabHotels—two of OYO’s largest competitors—from its platform. That way, both MMT and OYO could peacefully coexist and thrive, while Treebo and FabHotels shrivelled away. Not surprisingly, the offended duo approached CCI citing anti-competitive behaviour. MMT had more than 70% share of the online travel aggregator …
Two orders this past week prove that history is not going to be kind to OYO. Plus, MakeMyTrip was due for a comeuppance too.
Editor's note: Let’s begin this story with the interim order of the Competition Commission of India, or CCI, because I think it is both urgent and damning. About three years back, two hotel franchise companies, Treebo and FabHotels, approached the competition watchdog with the complaint that MakeMyTrip had abused its dominant position in the online travel aggregator business and urged CCI to intervene and deliver justice. Much hoopla and drama unfolded. CCI first commissioned a study and found that MMT was indeed a dominant player in the online travel aggregator business in India and then launched an investigation into the matter. Treebo and FabHotels’ grouse actually dates back to 2018 when MMT entered into a clever but controversial contract with OYO. In exchange for listing OYO’s properties, the company said it would oust properties of Treebo and FabHotels—two of OYO’s largest competitors—from its platform. That way, both MMT and OYO could peacefully coexist and thrive, while Treebo and FabHotels shrivelled away. Not surprisingly, the offended duo approached CCI citing anti-competitive behaviour. MMT had more than 70% share of the online travel aggregator …
A debt-heavy global pivot to modest motels and accounting-led profits define the company now heading to Indian public markets.
The online visa startup stands out for its on-time visa and refund guarantees, far from the standard industry practice. It might be enough to attract anxious travellers for now, but the real test lies in making money out of this model in the longer term.
The challenges of running a budget hotel chain in India forced the decade-old company to quietly shift its focus to a travel management platform for corporate travellers. Now it must face challenges of another kind.
A debt-heavy global pivot to modest motels and accounting-led profits define the company now heading to Indian public markets.
The online visa startup stands out for its on-time visa and refund guarantees, far from the standard industry practice. It might be enough to attract anxious travellers for now, but the real test lies in making money out of this model in the longer term.
The challenges of running a budget hotel chain in India forced the decade-old company to quietly shift its focus to a travel management platform for corporate travellers. Now it must face challenges of another kind.
