Yahoo ends JV with OYO Life in Japan within 8 months after complaints from real estate owners
Yahoohad bought 30% shares in OYO’s subsidiary company in Japan – OYO lifein March 2019.
- However, according to a Nikkei report, Yahoo sold back those shares to
- OYO told Business Insider that the move will help “maintain existing sustained growth trajectory”.
AdvertisementTrouble seems to be mounting for Ritesh Agarwal-led OYO. Yahoo has cancelled its partnership with it in Japan, according to a Nikkei report. Yahoo had reportedly received complaints from hotel owners in Japan over contract issues, however the company has not specified its reason for leaving the
As per the report, Yahoo bought 30% shares in OYO’s subsidiary company in Japan – OYO Life in March 2019. However, in November, Yahoo sold those shares back to OYO.
Oyo however claims that the parent is ‘buying into’ its own business due to the ‘sustained growth trajectory’ – and claims to have over 5,000 customers.
"The company bought back the ownership earlier held by Yahoo! Japan, in the joint venture company, OYO Technology & Hospitality, Japan. This move will help the company maintain existing sustained growth trajectory but also enable OYO Global to have oversight in the operations, and ensure improved efficiencies, and customer service, and continued strong business economics and fundamentals,” said an OYO spokesperson.
Oyo’s partnership with Yahoo is barely a year old.
Meanwhile, OYO’s key investor
This comes at a time when Oyo is already in the midst of a controversy wherein both Indian and international partners are claiming that they are not being paid by the aggregator.
Earlier this year, OYO announced its partnership with Japan-based SoftBank Corp and the SoftBank Vision fund to expand its business in Japan – specifically for its housing rental service called Oyo Life.
In April, OYO sent a press release which said that OYO Life has built its presence on Yahoo! Japan - the country’s most popular internet platform. OYO Life leveraged the integration with Yahoo! Japan search engine, homepage, travel and real estate portal.
"We are really happy to partner with OYO, through this joint venture that promises to deliver good quality fully managed homes at affordable prices. With our local know-how, online distribution network and marketing support, OYO LIFE will soon emerge as the most preferred abode for the Japanese citizens and visitors in the country," Kentaro Kawabe, CEO, Yahoo! Japan had said in April.
Bizarre! The more losses Oyo makes, the more valuable it gets
Dues, death and an investigation — all that went wrong with OYO hotels in the last 6 months
Popular on BI
- 'Die-hard' Nintendo fan spent over $40,000 buying stock and then asked top executives why the company won't make more of a fan-favorite series
- Mark Zuckerberg told Meta staff he's upping performance goals to get rid of employees who 'shouldn't be here,' report says
- Four-days work week, full and final settlement within 2 days of exit — new changes at workplaces to reflect from July 1
- It’s not the CM seat but the one who wields ‘bow and arrow’ will be the Sena head
- SIMPLY PUT: extreme weather is the new normal in India
- Antonia Wade, PwC's global CMO, tells Insider how B2B spending changes in tough economic times
- Ban on single-use plastic kicks in across India as the country recognises the choking impacts of plastic waste on the environment
- Bank FDs will draw down from mutual funds if interest rates go up to 7.5-8%, says report