Building An App Like Oyo And Its Development Cost

Have you ever had difficulty finding a furnished room to spend a night or two in a new town? Many of us who relocated to a new place to study, intern, start a new career, or start a business have been through the tedious process of finding a suitable space, as well as dealing with shrewd brokers, creepy landlords or tenants, gloomy food, and poor maintenance due to a lack of funds.

The situation has changed. Nowadays, it is easy to find a shared apartment, private room, or even a common space with a couple of clicks on a mobile app such as OYO or ZoloStays. On the one hand, this provides people with the ability to have all the benefits at a low cost. On the other hand, it has provided companies with numerous benefits and has made them much keener to find an avenue to join the market of Co-living and determine the price of OYO-similar app development, which we'll explore in greater detail in this article.

However, instead of directly exploring the ways to create an app similar to OYO along with the additional requirements that are required, we will delve deeper into the Coliving market area to find out what the future and present of the market are and how OYO is gaining a lot of popularity in the market compared to the various options available.

This starts with the recent financing that was raised from the market for co-living.

Recent Funding Raised in the Co-Living Market

The co-living market, primarily in India, had a market value of $120 million in 2018. However, this figure is projected to increase to 20X by 2022. A hint of that can be gleaned from the amount of money that was raised last year in the following manner:

• StayAbode has raised an unspecified amount of money from Voyage Group, Akatsuki, and Incubate Fund to add to its pre-series a funding.
• CoLive received funding of $1.8 million from Ncubate Capital Partners in 2018.
• Grexter, a startup that was co-founded in Bengaluru, was awarded $1.5 Million in a pre-series A investment by Venture Catalysts.
• Mumbai-based ZoloStays secured a $30 million Series-C investment from IDFC Alternatives, Mirae Asset, and Nexus Venture Partners.
• In the year 2018, OYO started the 'OYO Living' programme, which is expected to grow to the top 10 metros this year with 50k beds and a minimum monthly rental of $99.
• Although a variety of startups have raised money within the Co-living market, not all are generating a profit within the field or have even established their own. In this kind of scenario, knowing the most prominent players in the field can help you think strategically. In light of this, we are going to turn our focus to the most prestigious players in the field.
• Though all budget-friendly hotel booking apps are competing against one another, the one that has demonstrated the potential to be No. 1 in the business is OYO Rooms.
• Let's look at the history behind Oyo before proceeding to examine the Oyo app development costof creating an app similar to it.

OYO: A Brief History

Popularly referred to in the industry as OYO Rooms, they came into existence in 2013. The company was founded in India and today dominates the market in China, Malaysia, Nepal, the UK, and the USA. It is now among the most prestigious hotel Chains worldwide and is the third-largest hotel chain in China. The brand has introduced a variety of new products to the market, including OYO Living, SilverKey, OYO Homes, and Palette.

It has also gained a significant amount of recognition in the market and offers a myriad of benefits to clients and business partners. After having gone over the fundamentals of the Co-living marketplace and OYO mobile app, We'll now move on to the technical aspects, beginning with the functions of the mobile app development company in Delhi.

The features of OYO are similar to those of the App

Although you're likely already familiar with the fundamental aspects of the app, let's review the features that simplify the OYO application creation process:

• Although these basic features helped the app enter the co-living industry, OYO also added new functions to give a more comfortable living experience for travellers, students, bachelors, and the millennial generation. The new features you need to look into when you are thinking of creating an app similar to OYO are:
• OYO Money as well as OYO Rupee OYO Rupee and OYO Money: These are the two virtual currencies in the OYO application that display the amount you earned through making the application available to your acquaintances or taking advantage of certain booking deals that are relevant.

• OYO Wizard is an OYO Wizard membership programme in which regular customers at OYO will enjoy bonanza discounts and promotions for their reservations.
• OYO Captain: Using this option, clients can employ an in-person OYO representative to manage everything related to their stay. They will go over the conditions of the hotel's book and verify the facilities and training for personnel at the hotels, as well as help you in the event of any issues. In addition, they give you information on places to go, restaurants to eat at, activities to take part in, and a lot more.
• OYO Assist: In contrast to OYO Captain, the app features the option of self-service. This means it gives you aid in gaining knowledge of the policies for bookings at hotels, as well as the ability to change the booking with just three taps, request refunds at a quicker pace, and also file an issue with any hotel service fast and efficiently.
• OYO SOS: This OYO app will offer support in the event of an emergency.
• Deals for You Here you can find hotel booking offers as well as exclusive discounts provided by OYO partners, which include banking institutions and service suppliers.

The business is aiming to become the biggest hotel chain by 2023, boasting more than 330,000 rooms spread across 550 cities, and is also putting in maximal efforts to study the requirements of customers and identify better options.

In a situation like this, If you came across this article in hopes of developing an app that resembles OYO with these new features, let me tell you that it isn't going to help. OYO has established itself across a range of customer and market trends and is currently working with customers with diverse expectations and viewpoints. The best strategy to launch a product and be noticed by the public, like OYO, is to focus on creating the MVP first. Read more on MVP in The Digestible Guide to Minimum Product Viable (MVP).

After that, we can now get into the technical side of the application. We'll also look at what's under the hood of the OYO App technology stack.

The Business and Revenue Model of OYO Rooms

In terms of the best way to begin a business such as OYO Rooms, one can opt for two distinct revenue and business models:

Aggregator Model

Franchise Model

• Aggregator Business Model

  The Aggregator model, which OYO Rooms followed until 2018, lets you connect with a variety of properties, hotels, and room owners to form partnerships and request that they market your services using their brand name. It means that the clients connect with them through your platform and can avail of their hospitality services without knowing their name, similar to what we've seen with Uber's business and revenue model.

  In this business and revenue model, you can earn approximately 22% of the profit share, while hotel and room owners get significant traction in the end, and their customers naturally receive exceptional experiences.

• Franchise Model

  This is the commercial model that OYO uses. With this revenue and business model, hotels and property owners were bound by your conditions and offer plans. They are required to guarantee the high quality of their customer service, increase their revenue according to your requirements, and also provide you with approximately 90 percent of the income generated by hotels' operations.

  Now, we're ready to get to the main point of this post, i.e., how to determine the costs of OYO, such as app development.

Cost of OYO Rooms App Development

Disclaimer: Although you may be navigating to this section in hopes of obtaining an exact amount, I'll let you know that what it will cost to develop an app like Oyois not definite.

The cost of developing an app is based on various factors, such as the application's features, the tech stack, the hourly rate of the app developer hired, and the number of hours needed for the process of development.

If we at PerfectionGeeks estimate the cost to provide our OYO-like application development based on the number of hours worked, the cost drops to $93,800. The estimated cost of OYO-style app development can vary based on your geographical area and the size of the team you employ. Therefore, it is recommended to research ways to outsource app development before negotiating a contract with a business.