Latest News

  • Home
  • National
  • Yet, how far can all these billions take a company that’s now likely to be at the centre of an investigation over the boy’s death in Delhi?
Yet, how far can all these billions take a company that’s now likely to be at the centre of an investigation over the boy’s death in Delhi?
Friday, October 18, 2019 IST
Yet, how far can all these billions take a company that’s now likely to be at the centre of an investigation over the boy’s death in Delhi?

The start-up may have raised over $1 billion in investments but that hasn’t improved the experiences of its guests.
 

 
 

One of India’s most-funded and widely celebrated tech startups has for long been at the receiving end of customer grievances about poor and faulty services. Now things may have gone too far.
 
On October 14, a 15-year-old boy died after getting electrocuted at an OYO Rooms hotel in South East Delhi. The boy, who was visiting Delhi from Dehradun, in neighbouring Uttarakhand, to participate in a shooting competition, was reportedly bathing when his roommate heard a shout. When the hotel staff entered the bathroom from the ventilation window, they found him lying unconscious.
 
This incident, one’s own terrible personal experience, and grievances of other customers made public on OYO’s social channels and other platforms, indicate a long history of accommodations that don’t match the company’s rosy financial portrait.
 
OYO did not respond to a detailed questionnaire from Quartz about how it ensures quality and safety at its property.
 
Substandard services
 
It was in October 2014 that I tried OYO Rooms for the first time – and swore to do so never again.
 
We were a group of four, including two German friends who had come to holiday in Southern India. For one of them, it was the first time in India and I wanted to make sure he would remember the trip fondly. I made an OYO booking in Wayanad, Kerala, weeks before the trip and even called the property to make sure everything went smoothly.
 
In the photos, the hotel appeared to be a three-star accommodation. In reality, it was somebody’s house that had been lying vacant for years and had been opened just the day before our arrival. The two rooms in the house we were given had walls so damp that every few minutes, through the night, the plaster would chip off from one corner or the other.
 
My embarrassment aside, the accommodation was so uncomfortable we decided to cut our three-night trip short and return to Bengaluru the next morning itself.
 
Then, OYO was still a year-old and we all gave it the benefit of doubt. Yet, all these years later, not much seems to have changed.
 
On September 14, stand-up comedian Garv Malik shared on Twitter his experience of staying at an OYO Townhouse in Kolkata, with a video of huge rats running around his room.
 
While the comic made light of the situation, the episode highlighted a serious health and safety hazard. Besides, this wasn’t the only incident involving rodents reported at an OYO property.
 
Earlier this month, Mohamed Najiullah, a senior consultant at software consultancy firm ThoughtWorks, created a portal called “oyo-ruined-my-anniversary.com” to share the story of how he and his family got stuck on a remote island in Andaman with poor mobile network connectivity as the hotel staff refused to acknowledge a booking made through OYO.
 
“Soon after I landed in Chennai, I came home and called up OYO. I explained all of this to the executive and he put me on hold in order to transfer me to a manager. Someone then answered and I went ballistic. I told him all the pain I had experienced because of OYO and how OYO ruined my wedding anniversary.
 
After listening to me for 10 minutes, the person then responded saying “What can I do?” I couldn’t believe my ears that this person was being so callous about such a big issue. I told him to address my issue and that was when the person told me, “Sir, I’m also a customer. I called regarding a complaint myself.”
 
OYO had connected me to another customer.

 
 

A simple search for #OYORooms throws up countless horror stories of people who have had bad experiences with the company.
 
Senseless hype
 
The irony is that while customers are dealing with serious inconveniences and life-threatening hazards at their properties, OYO has been projecting a rosy image with its multi-million dollar funding plans and overseas expansion.
 
The company claims it offers over 850,000 rooms across more than 800 cities and nearly 23,000 OYO-branded hotels. It also calls itself the world’s third-biggest hotel network. In August, the company said it had signed a deal to buy the famous 657-room Hooters Casino Hotel in the American gambling and entertainment hub, Las Vegas.
 
In September, the Gurugram-based company said it had raised $1 billion – around Rs 7,200 crore – in fresh funding from SoftBank Vision Fund, Sequoia Capital, and Lightspeed Venture Partners. The three had already pumped in $800 million with a promise to invest $200 million more, OYO said. The funding made OYO India’s latest unicorn – private startups valued at over $1 billion – and the second-most valuable one after One97 Communications, which is the parent company of digital payments app Paytm.
 
So far, OYO has raised up to $1.7 billion in 12 rounds from some of the most prominent global investors and companies, including Softbank, Sequoia, Lightspeed, Grab, Airbnb and Didi Chuxing, according to Crunchbase.
 
Last week, the company said it plans to raise another $1.5 billion, including the 26-year-old founder, Ritesh Agarwal, bringing $700 million from his own wealth into the company.
 
Yet, how far can all these billions take a company that’s now likely to be at the centre of an investigation over the boy’s death in Delhi?

 

 
 
 
 
 

Related Topics

 
 
 

Trending News & Articles

 Article
Here is the full list of 827 porn websites banned by the DoT

While the Uttarakhand High Court has asked to block 857 websites, the Ministry of Electronics and IT (Meity) found 30 portals without any pornographic content. ...

Recently posted . 61K views . 1 min read
 

 Article
Class XII Boys Raped 16-Year-old in Dehradun School After Watching Porn on Phone: Police

The four boys as well as five school officials, including the director and principal, were arrested after the incident. The minors were presented before the Juvenil...

Recently posted . 7K views . 1 min read
 

 Article
Sept 27,2001 Rahul Gandhi and his girl friend Veronique,was arrested in Logan airport in Boston

Rahul was having an Italian passport and was carrying suitcase full of dollars. Some say it was about was it $2 million. Rahul and his girl friend was th...

Recently posted . 7K views . 7 min read
 

 Article
TOP 10 GYM EQUIPMENT BRANDS IN INDIA 2017

True – Tr...

Recently posted . 6K views . 83 min read
 

 
 

More in National

 Article
Parliament passes new Consumer Protection Bill

The bill seeks to establish a Central Consumer Protection Authority (CCPA) to promote, protect and enforce consumer rights.

Recently posted. 568 views . 0 min read
 

 Article
Govt to invite fresh applications for post of RBI deputy governor

Interviews were conducted on July 29, 2017 for the post of RBI deputy governor, but the government has decided to start the process all over again.

Recently posted. 557 views . 1 min read
 

 Article
Andhra's 3-Capital Plan One Step Closer To Reality, Gets Governor's Nod

Andhra Pradesh The new tri-capital plan of the YS Jagan Mohan Reddy government involves setting up executive, legislative and judicial capitals at Vishakhapatnam,...

Recently posted. 364 views . 1 min read
 

 Reviews
Top 5 Bestseller Novels in India 2018



Recently posted . 1K views . 35 min read
 

 Reviews
Top 10 Real Estate Websites for Property Search



Recently posted . 974 views . 48 min read
 

 Article
JEE Main free coaching stopped in Delhi; candidates pose tough questions for CM Arvind Kejriwal

Delhi Chief Minister Arvind Kejriwal-led Aam Aadmi Party (AAP) government started a scheme in 2016 under which it had collaborated with a private institute to pro...

Recently posted. 452 views . 1 min read
 

 Article
BJP backs PM Modi, terms AICC as 'All India Corrupt Congress'

The Bharatiya Janata Party (BJP) on Monday hailed Prime Minister Narendra Modi`s scathing attack against the Congress stating that the AICC (All India Congress Comm...

Recently posted. 611 views . 1 min read
 

 
 
 

   Prashnavali

  Thought of the Day

Too many of us are not living our dreams because we are living our fears.
Les Brown

Be the first one to comment on this story

Close
Post Comment
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST


ads
Back To Top