So, hey everyone, in this video, we will talk about Octopus business model.
Now, in Octopus business model, we put diversification of business activity at the heart of the way
this business operate.
And if you look at Octopus, we all know that octopus have different tentacles by which normally octopus
move at different places.
So all of these tentacles are separate branch of your business,
and these are innovation branch, and these are connected to the head of octopus or your main business,
and these branch work independently with each other.
Now, we all know that OYO have diversified all of these different type of businesses in such a way
that all of these businesses will generate revenue for OYO.
If you look at businesses like OYO Rooms or your Town house, OYO Home, Collection O, OYO Life, Vacation
Home, OYO Workspace and OYO Silver Key. All of these different businesses of OYO are connected to
the head of the main business of OYO, which is especially in real estate.
But all these businesses are targeting the different audience, and they have different revenue generating
stream.
Now, some of these businesses have official tie ups with multinational companies, while some businesses
are purely consumer facing businesses, so-called B2C businesses.
So OYO have presence in B2B market, B2C market, and even they have diversified all of their brand
into other different domains as well, like work space, vacation home
and all of these category.
And this video obviously, I'm talking about OYO, but you can take example of any company that have
different tentacles or branches of innovation, and all of those branches are connected to the main
business. Even if you look at brands like Google or Microsoft,
all of these companies have separate product line, and those product line will innovate, expand and
operate separately.
But all of them are connected to the main branch.
Now, obviously in this video, I have just taken an example of OYO.
But even if you look at other companies like Google or Microsoft, all of those companies have all of
these different tentacles and these tentacles operate separately,
they have separate branch of innovation, but all of these tentacles are connected to the head of the
business, which is Google, Microsoft or Facebook.
Whatever the main head is. Now for those people who are not really sure about all of these brands.
Let's have a look at all of these different brands of OYO, and then we will understand how exactly
OYO make money or how exactly octopus business model work.
So if you look at one of the brand of OYO, which is OYO Townhouse, they provide you a very unique
piece of property, which is 25 percent hotel, 25 percent home, 25 percent café and 25 percent
store.
Now all of these property are self-managed by OYO.
So if you visit any OYO Townhouse in that specific place, you can stay there.
It will feel like a home to you.
It will also have a café, and you can also purchase something from that specific townhouse.
So it will be a combination of home, hotel, café and store.
And these are self-managed by OYO.
Then you have OYO Life.
And if you are a college student or a working professional, and if you're looking for some space where
you can just stay there, you can just have your food, then OYO Life is the best option for you.
It is exclusively designed for college student or working professional who is looking for a paying guest
or a space where they can stay.
And they just can.
They can just go to the office or they can study.
It's a separate place for bachelors.
Then you have OYO Vacation home.
And let's say if you are planning some vacation with your family members and you're looking for some
good stay, near some beach or exotic island or some villa, then OYO vacation home is the best option.
All of the OYO vacation home are very close to beach or exotic island.
Then you have OYO Silver key, and OYO
Silver Key is exclusively designed for corporate individual.
So let's say if you are someone who is working for some multinational company and you're meeting some
client in a new city, then your company will book a stay for you in OYO Silver key because they
might have some official partnership with OYO.
Same goes with Airline.
So let's say if you are a pilot or a air hostess and you are traveling to a different city or to a
different country than your airline company may have some partnership with OYO Silver key,
and you will also get a stay in OYO Silver key.
The main purpose of silver key is to provide you comfort, peace and silence if, you do not have children
playing around.
Now let's understand the business model of OYO.
Now this is the business model of OYO,
but this business model is also applicable in case of Airbnb and Trivago.
So you have host on one side and your visitor or customer on other side.
Now this host can be an individual person or a property owner or a hotel owner.
And this is your customer and you have your Airbnb or OYO or Trivago in the middle.
So this platform will provide access to market both to the host or to the visitor. In case of visitor,
visitor can simply open the app and he can search for a property, and then he will get the list of
property based on price and distance from his location.
And then he can select a property which is very close to the desired location at a good price.
On the other side, host can also get the access of different people from different areas.
And that's why this platform will provide access to market both to the visitor and to the host.
Now because visitor is visiting this specific platform to search for different rooms or different places
to stay, he will request for this specific room.
And this host will entertain this specific person, and he have to pay some amount of fees or platform
fees to this specific business, which can be OYO, Trivago or Airbnb. Now,
because this specific platform is giving a customer to this specific host, then the host have to pay
a service fees or a renting fees of three percent.
And because this visitor is booking this specific room with the help of this platform, he also have
to pay 6 to 12 percent of service fees, so-called renting fees. In case of OYO, OYO combine both
of these fees together.
But again, this depend on the type of business model that you are following.