Yoho Bed: Scaling Up a Platform Business in the Hospitality Industry

Yoho Bed is a hospitality industry startup based in Sri Lanka. Yoho’s business model is based on the new sharing economy concept whereby it facilitates exchange between tourists and small-sized hotels, mainly from the informal sector. However, unlike a mainstream online travel agency, Yoho goes beyond platform mediation and extends expertise to its partners. Through this collaborative approach, Yoho aspires to develop trust and build a strong relationship with its partners, a source of competitive advantage. Yoho’s target segment is mainly budget-conscious travelers. Positioning itself in this narrow market space allows Yoho to project a unique image and make the competition less relevant. Despite impressive growth, Yoho faces numerous challenges that impede its progress, including the inability to govern partners effectively, the necessity to prioritize the interest of both providers and users simultaneously, scarcity of resources, and challenges in the external environment. The founders are considering three main strategic directions to scale the enterprise and take the startup forward: deepen its strategic position, diversify, or expand internationally.