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Armed with $1 billion from SoftBank, Oyo became India's largest hotel chain by offering budget hotel owners guaranteed payments and big promises. Then, say hotel owners, it reneged on the deals. A thread on what we found: https://www.nytimes.com/2019/11/12/technology/softbank-startups.html
Oyo's contentious relationship with Indian hotel owners shows how the tidal wave of money that SoftBank put into Oyo and other start-ups has devastated the contractors that depend on them for a living.
For Sunil Solankey, who can't pay the rent and electric bills on his hotel in a Delhi suburb, Oyo's actions have pushed him to the brink of losing the business. “It is suicidal for me,” he said.
But Oyo says that the complaining hotel owners deceived the company. "Asset owners continue to believe that Oyo is the best option in terms of the value proposition we can provide for them,” said CEO Ritesh Agarwal.
Read our report on how SoftBank's billions have hurt workers on three continents. With @nathanielpopper, Arjun Hadrinanath and lots of help from @Karan_Singhs. https://www.nytimes.com/2019/11/12/technology/softbank-startups.html
