Online to offline (often abbreviated O2O) companies provide web-based or mobile-based platforms that give consumers access to offline goods and services. Consumers pay online for their offline services and the O2O company takes a cut, passing the rest of the payment on to its offline partner.
The advantage an O2O business provides for consumers can vary. Some O2O businesses, like daily deals sites, offer consumers discounts on offline experiences like meals at restaurants or movie tickets. Some O2O businesses offer convenience (like taxi apps that allow you to book a ride on the go) or an abundance of choice (like O2O education apps that allow you to browse all the classes and teachers in your area).
The advantage of partnering with an O2O business as an offline partner (like a retailer, restaurant, or movie theater) is that it gives you access to the O2O platform’s user base and often makes it more convenient for consumers to spend on your services.