India-based Oyo has targeted Japan as its latest market through a joint venture with Yahoo Japan, to bring its home rental model Oyo Living, to be called Oyo Life in Japan, with a minimum stay of 30 days.
Oyo Living is described as offering unique living experiences for students and young professionals looking for good-quality, affordable accommodations, and it launched in four Indian cities with more than 35 properties with over 2,000 beds. It aims for more than 50,000 beds by the end of this year.
Yahoo Japan is majority-owned by Oyo’s biggest funder, SoftBank, who will have representation at the highest level. Yahoo Japan is the second most visited website in the country, behind Google, exposing potentially billions of viewers to Oyo Life.
Japan’s stringent laws on homestays forced Airbnb to delist around 80% of its home listings in June last year, but Oyo can bypass this by taking full control of the property while ensuring guaranteed rental yields to owners.
Oyo Life aims for more than 1,000 homes this summer across all of Tokyo’s 23 municipalities and plans to bring Oyo Hotels across Japan and other countries including Saudi Arabia, the Philippines, and the United States.
Oyo’s success depends on how cutting-edge Oyo Life is in its design and comforts, and how affordable its pricing is through technology efficiencies, in order to reach a wide audience that includes young people looking for homes as well as leisure and corporate guests staying more than a month.