The rapid expansion of Internet companies seems to always leave behind a chicken hair, the end of the year, the beginning of the year, there is a model – OYO hotel. “TR (Training-related) department, completed all layoffs in March (possibly ahead of February); AH (floor service) reduction, AM (lobby assistant) significant lysing, performance for D’s overall optimization, no compensation; financial requirements for all office rental reduction, or even the cancellation of city offices; CGM (General Manager) survival, Reduce CGM, reduce spending, HUB (domestic regions) merged. “
The above is oYO hotel staff recently on the social platform to actively disclose the layoff information, for the authenticity of the information, OYO official did not respond positively to the IT Times reporter.
Against the “world’s third-largest hotel chain brand” aura, in the past half-year, OYO has appeared to be in the wind and rain, “cut down” “loss” label has been accompanied by OYO.
In 2017, OYO launched in Shenzhen, by attracting low-end hotels to join the way, the introduction of 1.0 mode, 2.0 mode of extreme lying to occupy 338 cities, 19000 plus hotels, OYO in China,” the phenomenon of “water and soil” is becoming increasingly serious.
In addition, in the relationship with the owner’s hotel, the owner’s rights report is also commonly reported, the disadvantages of the bottom-up model gradually revealed, OYO is losing the trust of the owners, but also lost their moat.
Dunkirk Grand Retreat of “Guaranteed Mode”
Mr. So Jiangfeng, who has run one of his own small hotels in Xi’an for many years, signed a contract with OYO in October 2019 to become one of its nearly 20,000 hotel owners.
According to So Jiangfeng, before signing the contract, OYO Xi’an staff had verbally promised him that after cooperation, Sojiangfeng’s 35 rooms will receive 52 yuan per room / day as a guaranteed income, the monthly income beyond the monthly guaranteed income after 55 percent. During this period, OYO is responsible for price control and room orders for online sales of the hotel, while Mr. So is responsible for the day-to-day operation of the hotel.
The above model is oYO’s most mainstream bottom-safe mode.
“House prices are too low to afford a pie”
“The reason why you would consider working with OYO is still looking at stable bottom-up earnings. So Jiangfeng said. Although not located in the center of Xi’an, according to 50 yuan, 80 yuan, 100 yuan, 120 yuan to calculate the price, So Jiangfeng’s hotel monthly income can usually exceed 40,000 yuan.
It is to see that cooperation with OYO can make no money, So Jiangfeng and OYO signed an agreement. On the day of the signing, OYO staff immediately put the 3-day guaranteed bottom income of 5460 yuan into his account, is to eat a dose of heart-stopping pills.
In order to meet the requirements of OYO Hotel, So Jiangfeng as far as possible to cooperate with OYO’s work requirements. Within three days of signing the contract, he spent 31,000 yuan to clear the hotel at that time to rent 27 long-term renters, from the family to help point out hotel hygiene, but also hired additional room service personnel.
The good times were not long, and in the first month of OYO’s operation, Mr. So found that his account did not receive all the payments from OYO as it had been. On the reservation app, rooms that originally sold for $50 to $120 were sold by OYO several times below the original price.
1-29 yuan of the price, so that So Jiangfeng’s hotel customers filled up instantly. “During that time the whole family was really busy crazy, the price is too low to afford a cake, we still have to hold on, thinking OYO promised to give me a room 52 yuan / day, how they toss us, all try to match to meet their needs.” So Jiangfeng recalled.
Suddenly not “guaranteed”
Until the end of December 2019, So Jiangfeng was suddenly informed that the original contract ended before January 1, all franchisees no longer have a guarantee fee, OYO to the hotel owners of the cost will be settled on a weekly basis, do not agree to sign a new contract of the hotel will be regarded as automatic release.
To cancel the guarantee agreement, Mr. Sow said he had no knowledge of it and that OYO staff had not sent such a message in writing. To Mr. Soo’s scare, all the proceeds have been in OYO’s account for months, and in order to keep the hotel running, he not only swiped his credit card, borrowed online loans, and owed a loan.
“Xi’an operations manager constantly WeChat harassment and call me, under pressure, I signed a new contract on December 26 last year, but at this time has been 75 days away from joining OYO, according to 1820 yuan / day of the bottom cover to calculate, except that the then transferred to my 3 days of guaranteed bottom Income 5460 yuan, OYO also need to pay me 131040 yuan, but in fact, I only got 24863 yuan, during this period, my hotel expenses have 60,000 yuan, OYO also asked me to pay OYO nearly 8000 yuan advance. So Jiangfeng is angry about this.
On January 15, an IT Times reporter contacted the OYO hotel operations manager who had contacted Sojiangfeng via WeChat to verify the situation, but was refused a request by the other party on the grounds of his departure.
Weak legal awareness leads to difficulties in defending rights
“IT Times” reporter noted that So Jiangfeng sent a paper contract photo, did not appear OYO promised 52 yuan per room / day guaranteed bottom income of the words, and the contract is also very irregular, not only no seal, and even some important content did not fill in the complete. Mr So jiangfeng said he could not find the electronic contract, which he had signed with OYO, which he could not find, and that the paper contract was a sample of which he had filled against the contents of the electronic contract. In the end, he didn’t even have a formal paper contract with OYO.
Sun Wansong, a lawyer at Beijing Dehe Heng (Shanghai) Law Firm, said that a contract concluded in writing, before the two parties signed the seal, if one of the parties has fulfilled its obligations, even if the other party has not signed the seal, the law believes that the contract is established and effective. Oral commitments cannot be recognized, even if there is a difference from the subsequent written contract, which, from a legal point of view, will prevail on the subsequent written contract. In addition, if one party alters the contents of the contract without authorization, and the law finds it invalid, it must be reached by consensus of both parties before it can take effect.
Sun Wansong believes that the franchise owners of the weak legal awareness, so that the dispute between them and OYO into a “headless case”, difficult to trace.
In fact, looking at the whole country, So Jiangfeng’s situation is not an example. In other cities, many owners have suffered similarly to Mr. So. According to public media reports, several activist groups gathered hundreds of people, and even owners went to Shanghai OYO headquarters to claim the story.
Asked why the recent outbreak of OYO hotel owners’ rights, OYO said that more than 5 months online, 2.0 model in the country quickly promoted, “in the course of operation, we found that some of the cooperative hotel’s guaranteed amount and the local market does not match, there are some owners of data fraud, so as to affect the long-term development of the hotel.” For such hotels, we will renegotiate with the owners on the fair and transparent value of the guarantee. “
The long-standing wave of layoffs
On January 15, 2020, Bloomberg reported that “OYO has cut 5 per cent of its 12,000 employees in China, 12 per cent of its 10,000 in India, and plans to lay off 1,200 more in India over the next four months.” “
OYO: A performance-oriented company
On the social platform, “IT Times” reporter noted that there are OYO employees said, “will temporarily retain the sale (sales) department preparation, the company is currently trying to directly connect with travel agencies, travel agencies directly to the OYO system, after the later stability, will be sale optimization.” “Currently receiveHR information is one for each hub (region), TRH (training department, etc.). More recent lyse workers said, “have signed an agreement, get 2.5 times compensation.” “
This isn’t the first time OYO has been thrust into the limelight because of the topic of layoffs. In June 2019, the IT Times published the “OYO employees were laid off for falsely reporting data?” Reporters visit his Shanghai office on the ground.
In response to the latest layoffs, the IT Times reporter to OYO people to verify. “OYO Hotels is a performance-oriented company that evaluates the performance of each OYO employee in a rigorous system that starts on the first day of each employee’s employment, not specifically for a recent period of time,” OYO officials said. We are meritocratic and use this principle to evaluate, reward and recognize the individual performance of our employees and to help them improve. “
On January 14th, a reporter from the IT Times came to OYO’s Shanghai headquarters after the layoff.
At around 10:30 a.m., at least 10 people entered and exited the 4th and 5th-floor OYO offices of the Shanghai-East Financial Building in Yangpu District. Looking inside the office from the glass doors of the 4th and 5th floors, most of the seats are still available, despite the spare space. In response to the recent layoffs, an OYO employee told reporters, “recently did make personnel adjustments”, but the specific situation, not convenient to disclose.
Yang Beibei (pseudonym), an employee working in OYO, told the IT Times that the company’s assessment standards are very strict, sales are divided into three grades, each grade corresponds to the ABCD four grades, if two consecutive months into the C, D file, to carry out PIP assessment (performance improvement plan), performance is still not through the PIP assessment, will be dismissed.
May be “optimized” at any time
Wolf performance assessment KPI, to the hotel’s “when red fried chicken” OYO brings a short-term data surge, rapid expansion, but inevitably or data fraud into a vicious circle.
“Inside OYO, the clerk’s education is uneven and the quality is not good enough. Take East China As an example, OYO’s clerks are mostly relying on friends to introduce each other, the manpower company has no requirements for academic qualifications, high school to college clerks have. “OYO’s former employee, Myan (pseudonym), told the IT Times.
“At first oYO idea is good, early by burning money to occupy the market first, later rely on the operation team, diversion, then do secondary drainage can be the market well. But why is it done now? My department, from employees to leaders, has to sign a single every month, otherwise it will be optimized. “Mayne believes that the enormous pressure on KPI indicators has made business operations distorted, and that the new employees he has come into contact with lack systematic orientation and unified technical support, and that even business executives know little about product and performance controls.”
Operations Manager 3 for 3 in 3 months
At the same time as signing contracts with the owners, forced by OYO’s performance-oriented policies, sales staff will often raise the hotel’s guaranteed bottom income, which ultimately leads to the commitment of the owner’s performance can not be achieved.
A close oYO insider said, “For example, a 30-room hotel, even if the peak annual revenue of up to 1.5 million, but the salesman will sign the bill will tell the owner, the guaranteeprice price is 2 million / year, in the owner’s eyes, the bottom price is very attractive will agree to sign, but in fact, after a month of cooperation found that the hotel traffic simply can not reach 2 million, and then will be reduced to the bottom.” But by this time, the salesman had left his post, and the series of questions that followed were self-evident. “
At OYO, employee mobility is strong. An OYO internal staff member showed reporters a district RGM (regional general manager) information introduction, the reporter saw that the person’s entry time is September 2019.
So Jiangfeng told reporters that within 3 months, OYO is responsible for docking his hotel operations manager on the replacement of three. At OYO, Mayne was working on a sales job, “I signed up for the hotel, one month to replace 3 operations managers, the hotel owner finally had a problem, do not know who to find to solve.” “
In the interview, So Jiangfeng also told reporters that he is in accordance with the OYO company’s request for content to operate, but there are still some inexplicable deductions appear in the bill, so that they are confused.
In response, OYO insiders explained, “OYO has a third-party audit company similar to outsourcing, and every month they come to the owner’s hotel to take pictures and check, but at the same time they will add some fines to the hotel.” Because fines and revenues during the operation do not take place until the beginning of the following month, many hotel owners are not clear about why they are fined. “
“Guaranteed” says it’s gone?
At present, OYO hotel franchise mode has experienced 1.0 mode and 2.0 mode.
OYO’s 1.0 model focuses on the hotel’s infrastructure construction, for the hotel to provide shop renovation, grass upgrade, in the basic transformation at the same time, OYO Hotel also arranged for a dedicated person to manage the hotel, enhance the hotel’s access channels, to ensure the hotel’s management and income promotion.
2.0 mode period, it has become from the previous payment of joining fees, simple withdrawal of the way, into the brand and the owner share the risk, share the benefits. Previously, OYO Hotel Xi’an Regional Deputy General Manager Zhang Yaguang to the “IT Times” reporter, “OYO’s 2.0 business philosophy is: first in the OTA website and OYO client with preferential prices to attract visitors to the door, and then the hotel front desk to convert it into OYO members, forming a virtuous circle and then attract more repeat customers.” As the rental rate increases, prices will adjust, which in turn will increase revenue. “
On January 15th, OYO employees broke the news on the social platform that OYO had launched a win-win product. “The so-called win-win treasure, that is, 2.0 model of the pumping, zero guarantee bottom, the end of the week, that is, the newly introduced 3.0 model. The employee said.
Today, the “zero guarantee” mentioned in Sojiang Feng’s mouth may be the prototype of the 3.0 model.
Once attracted a large number of hotels to join the “bottom model” said no.
For OYO, upgrading from 2.0 to 3.0 is faster than Sichuan’s dramatic face change, and the “guaranteed cost” says no. OYO seems to have firmly held the franchisees’ pigtails, while SojiangFeng is caught in the awkward position of defending the rights of the case.
For a large number of individual franchise owners, waiting for them is confused contract relationships, be made of low house prices, advance operating expenses, a large amount of insurance arrears. The lack of legal awareness has exposed them to great losses.