In yet another setback for Gurugram-based hospitality unicorn Oyo, regarding complaints from the property owners, Yahoo has cancelled its joint venture with the company for its real estate rental brokerage business, Oyo Life, in Japan.
According to a report by Japan-based Nikkei, Yahoo invested around 30% in Oyo Life, which started its operations in Japan in March 2019. However, Yahoo, in November 2019, reportedly sold its shares to Oyo Technology and Hospitality, which is registered in Japan.
Oyo has gone live with its Oyo Life services in Tokyo with more than 1,000 residential units. Under the new service, the company is offering fully-furnished apartments on rent to its customers in Japan. However, the recent move from Yahoo reportedly comes on the sidelines of various property owners complaining to Oyo about contracts.
As of now, the reason for Yahoo’s dissolution from Oyo has not been clarified. However, speaking to Inc42, an Oyo spokesperson said that the company has bought back the ownership earlier held by Yahoo Japan, in the joint venture company, Oyo Technology and Hospitality, Japan.
The spokesperson added:
“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."
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