Founder CEO at Bombay Shaving Company, Bombae, 100Days, The BarberShop | Ambassador at OGQ | External Advisor at McKinsey, Advent | Love music, sport | Regular guy
Oyo raised billions, and tried organising budget hotels under one brand with some consistency. Bloom followed, understood the market, and is playing the same game but very slowly and methodically. Ola and Uber raised billions, and tried to make instant demand mobility mainstream. BluSmart followed, understood the market, and is playing the same game but slowly and methodically. Oyo, Ola, Uber are characterised by visionary founders, marquee capital, and an execution speed that is mind boggling. It literally creates markets where there were none. But the speed comes at a cost - customer love is not there. And that’s what makes these companies vulnerable. Bloom and Bluesmart are characterised by low profile, detail oriented operator leaders who take the time to marinate their product, expand with slow thoughtful pace, and keep the product experience pristine. But speed and growth is not similar - so growth-horny equity investors don’t back. Investors love the former, customers somehow love the latter. :) Frankly, I don’t think there a way to marry both. Especially in ops-heavy service oriented businesses that use tech as enablers. Urban Company may be a unique exception that has done both. If you are running a service business with heavy operating effort, make the choice early. :)
The 'speed vs. customer love' dichotomy is a fascinating point. It brings to mind the old adage, ‘slow and steady wins the race.’ But I think there’s a deeper layer. It's not just about speed, it's about intention. The first group seems driven by scale and disruption, almost as an end in itself. The second, by a genuine desire to solve a problem well. It's like the difference between mass-produced clothing and bespoke tailoring. Both serve a purpose, but one prioritizes efficiency, the other, a personal connection. In the service sector, especially, that human touch matters. It’s about creating an experience, not just a transaction. I wonder if the real challenge isn’t marrying speed and customer love, but aligning intention with execution. That's the real ‘jugalbandi’, isn’t it?
Insightful comparison! 🚀 The contrast between hyper-growth models like OYO/Ola and steady, experience-first models like Bloom/BluSmart highlights the classic trade-off between scale and sustainability in ops-heavy service businesses. Visionary founders with deep capital can disrupt markets rapidly, but sustaining customer love requires consistent product quality and operational excellence—something slower, methodical players tend to prioritize. The challenge is finding that elusive middle ground. Urban Company seems to have cracked the code, but replicating that balance isn’t easy.
There is more to it though. It’s clear that speed to market is prioritized for visionary customers. Mass market is entirely different and takes a different solution - a time tested solution that answers to the skeptics and pragmatics in the mass market. There are also no lessons to fall back on or learn from someone else’s experience in that industry. The laggards have that benefit. Having said that, visionary founders ought to learn how to penetrate the larger market effectively. That’s the chasm to overcome ( my interpretation after reading Crossing the Chasm)
More than the product, I guess it’s the culture that takes time to marinate. Speed scaling doesn’t allow the culture of customer experience to set in. And then organisations try to fix culture and behaviour issues with processes. 😀 Culture issues and bureaucratic processes - A double whammy on the customer experience.
A big difference of time as well. VCs have become more stricter in larger investements. Paytm, OYO, BYJU’s and many others have taught them to invest more wisely when investing larger funds. None will give money to waste Bootstrapped orgs have performed well till the time they haven’t gone all out for funds and have all decisions in their hands. At times VCs pressure decisions are diverting the org strategies as well. Founders are bound to follow the instructions when they have lost majority of their equity. Also, Sales is in wrong hands today. Majority thinks this can be done by anyone. People who have built the good idea and have chosen the wrong guys for sales haven’t been able to scale well. R&D is also completely missing and majority startups are going behind data science and a specific set of population. A specific data set can give your product a limited width. A larger population can be the right set of customer if targeted well but everyone wants online sales mostly because this is comparatively cheaper and has vast reach in quick succession. Everyone is chasing the same customer and customer has 10 options to pick today. Surely some will fail and some will rise but not for long. Nothing sustainable Shantanu Deshpande
Interesting POV Shantanu Deshpande But I feel OYO and Bloom is not a fair comparison as the latter is into a different segment altogether with variances in avg room night cost, and target audience. OYO is venturing into the premium category with launch of Sunday so it would be interesting to see how both the brands grow in the mid market segment. Given the cluttered space and a time when accom demand is growing faster than supply in India, speed and growth both will be super critical.
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9moThis is a fascinating analysis of the contrasting approaches in the service industry! It’s clear that both speed and customer love play crucial roles, but finding the right balance is key One marketing strategy that might help bridge this gap is focusing on building a strong brand narrative that resonates with customers. While rapid growth can attract initial attention, storytelling can help cultivate deeper connections. Highlighting customer testimonials and success stories can humanize the brand and foster loyalty Additionally, leveraging data analytics to understand customer behavior and preferences can guide both product development and marketing efforts. This can enable companies to make informed decisions about when to scale and when to slow down Another idea is to create loyalty programs that reward long-term customers. This not only encourages repeat business but also fosters a sense of community around the brand, which can enhance customer love Ultimately, while it may seem challenging to marry speed with a meticulous approach, integrating customer feedback into the growth strategy can lead to a more sustainable model. Companies that listen and adapt are likely to thrive in the long run. Looking forward to hear.