Why are so many African mini-busses in such a poor condition, uncomfortable and unsafe? They are an amazing solution to a lack of public transport, ferrying commuters in and between virtually every village, town, and city on the continent, yet so many are in an terrible condition. With a team of graduate students from Bocconi University in Milan, we set out to investigate this. Ke Ya Rona empowers taxi drivers to become vehicle owners.
Ke Ya Rona empowers taxi drivers to become vehicle owners. In a collaboration with Bocconi University graduate students, we researched opportunities to expand our UBER driver vehicle finance pilot from Johannesburg to other cities in the developing world. Where else in the world is there a healthy, growing UBER taxi market AND drivers lacking access to capital to buy their own vehicles? We found opportunities in Africa (Nairobi and Lagos) and India (New Delhi, Bangalore).
The document discusses the car sharing industry in India, including key driving factors like infrastructure issues, labor conditions, and urbanization. It analyzes stakeholders and system dynamics, identifying fragilities around unstable employment, safety, and security issues. Recommendations are made to improve the system through establishing labor standards, improved safety measures, segment diversification including two-wheelers, and partnering with new institutions and government. The conclusion states that while car sharing fills transportation gaps and creates jobs, the industry must implement changes to become more resilient to potential shocks.
Uber signed a strategic investment deal with Times Internet to help expand in India. Times Internet will help Uber navigate regulatory obstacles and grow its marketing and distribution in India. Uber faces challenges expanding globally from legal issues with taxis in various countries. India is Uber's second biggest market, and it is investing heavily there through partnerships like with Times Internet to understand local markets and consumers better. The taxi market in India is large but still developing, with opportunity for growth in organized sector players like Uber.
Uber's Rapid Growth with Innovative Strategy Mubeena Soomro
Uber rapidly expanded from its founding in 2009 in the United States to over 65 countries and 570 cities globally by 2012-2013. Using an innovative strategy of operating as a transportation network without owning vehicles or directly employing drivers, Uber was able to double its revenues every 6 months. However, Uber's aggressive expansion tactics and controversial practices have led to increasing lawsuits, bans in some areas, and conflicts with regulators and the taxi industry.
The document discusses the evolution of the sharing economy and Uber's role in it. It describes how economies have progressed from Stage 1's invisible hand connecting producers and consumers, to Stage 2's firm economy where producers organized into firms, to the current Stage 3 sharing economy where businesses provide platforms for peer-to-peer sharing of underutilized assets. Uber is presented as a leader in the sharing economy, launching in 2010 as the largest cab company that doesn't own any cars. The document outlines the benefits Uber provides to drivers, customers, and itself through the sharing model.
The Story of Uber In Communicating To Its Key Stakeholders In Singapore On Th...Isaac Ahmad
Our ultimate aim is to communicate how Uber can contribute
effectively in the “sharing economy” and align its business objectives to drive higher revenue
UBER-Current Strategy, Competition Analysis and Global ExpansionShaminder Saini
UBER Worldwide, Business Proposition, Funding Mechanism, Taxi Industry Impact, Porter's Five Forces, PESTEL Analysis, BCG Matrix, SWOT, Levels of Service, Customer Engagement, Value Proposition, Disruptive Strategies, Global Expansion
This presentation was made as a part of a competition and a team effort. All the information used are just for the event only.
Design of the slide and strategic part of this presentation (13-24) have been prepared by Raihan Khandker.
Ke Ya Rona empowers taxi drivers to become vehicle owners. In a collaboration with Bocconi University graduate students, we researched opportunities to expand our UBER driver vehicle finance pilot from Johannesburg to other cities in the developing world. Where else in the world is there a healthy, growing UBER taxi market AND drivers lacking access to capital to buy their own vehicles? We found opportunities in Africa (Nairobi and Lagos) and India (New Delhi, Bangalore).
The document discusses the car sharing industry in India, including key driving factors like infrastructure issues, labor conditions, and urbanization. It analyzes stakeholders and system dynamics, identifying fragilities around unstable employment, safety, and security issues. Recommendations are made to improve the system through establishing labor standards, improved safety measures, segment diversification including two-wheelers, and partnering with new institutions and government. The conclusion states that while car sharing fills transportation gaps and creates jobs, the industry must implement changes to become more resilient to potential shocks.
Uber signed a strategic investment deal with Times Internet to help expand in India. Times Internet will help Uber navigate regulatory obstacles and grow its marketing and distribution in India. Uber faces challenges expanding globally from legal issues with taxis in various countries. India is Uber's second biggest market, and it is investing heavily there through partnerships like with Times Internet to understand local markets and consumers better. The taxi market in India is large but still developing, with opportunity for growth in organized sector players like Uber.
Uber's Rapid Growth with Innovative Strategy Mubeena Soomro
Uber rapidly expanded from its founding in 2009 in the United States to over 65 countries and 570 cities globally by 2012-2013. Using an innovative strategy of operating as a transportation network without owning vehicles or directly employing drivers, Uber was able to double its revenues every 6 months. However, Uber's aggressive expansion tactics and controversial practices have led to increasing lawsuits, bans in some areas, and conflicts with regulators and the taxi industry.
The document discusses the evolution of the sharing economy and Uber's role in it. It describes how economies have progressed from Stage 1's invisible hand connecting producers and consumers, to Stage 2's firm economy where producers organized into firms, to the current Stage 3 sharing economy where businesses provide platforms for peer-to-peer sharing of underutilized assets. Uber is presented as a leader in the sharing economy, launching in 2010 as the largest cab company that doesn't own any cars. The document outlines the benefits Uber provides to drivers, customers, and itself through the sharing model.
The Story of Uber In Communicating To Its Key Stakeholders In Singapore On Th...Isaac Ahmad
Our ultimate aim is to communicate how Uber can contribute
effectively in the “sharing economy” and align its business objectives to drive higher revenue
UBER-Current Strategy, Competition Analysis and Global ExpansionShaminder Saini
UBER Worldwide, Business Proposition, Funding Mechanism, Taxi Industry Impact, Porter's Five Forces, PESTEL Analysis, BCG Matrix, SWOT, Levels of Service, Customer Engagement, Value Proposition, Disruptive Strategies, Global Expansion
This presentation was made as a part of a competition and a team effort. All the information used are just for the event only.
Design of the slide and strategic part of this presentation (13-24) have been prepared by Raihan Khandker.
This document provides an analysis of UBER in Bangladesh across several sections. It begins with an executive summary highlighting UBER's environmental analysis considering demographic trends, socio-cultural influences, technology factors and more. It then analyzes UBER using Porter's five forces model, IFE/EFE matrices, and VRIO analysis. Competitor and value proposition analyses are also included. The document finds UBER is in a hold and maintain strategy based on IE matrix analysis. It provides possible recommendations including dependence on manpower, customer bargaining power, and pricing models. The two main recommendations are product development and market development.
The following deliverables are carried out:-
1. Brief Overview on UBER
2. Environmental Forces that influences organization n vice-versa.
3. Macro Environment and Competitive Environment
4. Decision Making in UBER
5. Pros and Cons of Group-Decision Making
6. Procedure for making group decisions
7. Encouragement Methods for Creative Decisions
Uber is a global ride-sharing service founded in 2009 that now operates in over 500 cities worldwide. It has faced significant challenges to its brand image due to high-profile scandals involving its executives and attempts to profit from protests. While still the dominant player, competitors like Lyft have gained popularity by prioritizing driver and rider happiness through features like tipping. Other competitors such as Fasten and Flywheel have also emerged with different business models focusing on lower fares for riders or higher pay for drivers.
These slides use concepts from my (Jeff Funk) course entitled Biz Models for Hi-Tech Products to analyze the business model for Uber’s taxi service. Uber’s service enables anyone to provide taxi services and it provides dynamic pricing for better matching of supply and demand. Its value proposition for potential drivers is the opportunity to work as driver on their own hours. Its value proposition for user to lower taxi fares during most times of the day and a higher supply of taxis (and higher prices) during peak demand. The customers are tech-savvy and smart phone users who value their time. Uber receives payments directly from customers and keeps a percentage of these payments as its income. Uber’s patents for a demand-price algorithm represent a barrier of entry and thus a method of strategic control.
Will Uber be successful in Bangladesh??Saymon Percy
Uber has started operations in Bangladesh in 2016 and has been growing steadily with over 15-20 thousand active monthly users and 125,000 Facebook group members. However, it still faces challenges as it operates in the embryonic stage of the industry life cycle with a niche market and lack of awareness. While Uber provides a superior customer experience through its platform innovation and integration with services like Google Maps, it faces threats from potential substitutes and new competitors entering the market. For Uber to succeed in Bangladesh, it needs to strengthen its relationship with the government, improve safety, boost brand loyalty, leverage its first mover advantage, and expand into untouched markets through increased promotions.
Grab is a leading transportation and payment platform in Southeast Asia that has leveraged advances in technology to navigate digitization. It operates in 8 countries and 174 cities, with over 3.5 million rides and 2.3 million driver-partners. Grab aims to disrupt industries through innovations like GrabChat, GrabHitch, and GrabNow, and supports micro-entrepreneurs across 111 cities in Indonesia. The real challenge is not technology itself but how to drive digitization by meeting consumer demand, utilizing new technologies, and providing economic benefits.
It answers the following deliverables:-
1. Ethical Views affection Decision Making in UBER
2. Ways to Guide Future Decision Making in UBER
3. Issues in UBER surrounding Corporate Social Responsibility
4. Manager's Efforts to Reconcile with the Natural Environment
The document discusses the need for evolution in the taxi industry from 1894 to 2012 due to new technologies. It presents a solution as a platform that connects existing taxi companies, black cab services, drivers and passengers to trade orders and cabs. The platform aims to aggregate orders from all local taxi apps. The team behind it consists of serial entrepreneurs, IT experts and developers who previously refused jobs at large companies like Google and HTC.
This document analyzes the financial status of Uber. It discusses Uber's founding in 2009 as a mobile app-based cab service. By 2018, Uber was valued at $72 billion with over $2.5 billion in investments from companies like Google Ventures and Summit. The document reviews Uber's global booking volumes, core financials, cash reserves, debt levels, and strategic partnerships as of Q2 2018. It also outlines Uber's future projects, like investments in self-driving cars from Toyota and flying taxis in France. The conclusion states that Uber is one of the fastest growing cab services due to its affordable prices, good service, and unique offerings that have attracted major investments.
Uber is a network orchestrator that connects passengers with drivers through a mobile app. It operates in 57 countries and 300+ cities. The presentation outlines Uber's business model, customer segments, value propositions, pricing structures, growth strategies, challenges and competitors. It discusses Uber's plans to expand into new services like food delivery to diversify its business and continue strong growth. The presentation also considers whether changing Uber's business model to that of an aggregator could help address some legal and regulatory issues.
The document provides an agenda and overview of an Uber case study presentation. It discusses Uber's founding in 2009, its initial private car service model, and its transition to using an app. The presentation covers Uber's business model, including its value propositions for customers and drivers, profit model, and distribution channels. It also analyzes Uber internally, including its mission and strategies, and externally through PESTEL, 5 forces, and competitor analyses. Recommendations include maintaining consistent pricing, expanding services, and allowing advance reservations.
MKTG1203 presentation "Uber on women's safety"MKTG1203
Marketing Assignment for MKTG1203 at the University of Western Australia. We are looking at Ubers marketing strategies towards women, was to improve them
Uber faces several challenges including continuous losses, increasing competition from companies like Lyft, and past controversies and scandals. To address these challenges, the document recommends that Uber expand into new business lines like food delivery and freight, integrate multiple transportation options into one platform, and invest strategically in areas like acquisitions and self-driving cars to reduce costs and threats from competitors. It also suggests improving security measures and introducing features to make the Uber experience more social and convenient for users.
This document contains a presentation on human resource management practices at Uber. It discusses Uber's organizational structure, recruitment and selection processes, employee benefits, performance appraisal, training and development. It summarizes Uber's mistakes in downplaying HR initially and the events that led to the resignation of former CEO Travis Kalanick, including reports of sexual harassment and a toxic work culture. The presentation concludes with steps Uber has taken to address these issues as part of an initiative called "Uber 2.0".
Ola is an Indian ride-hailing company that was founded in 2010 and has become one of the largest cab aggregators in India. It operates in over 110 cities with over 600,000 vehicles on its platform. To compete with Uber, Ola has adapted its services for Indian users by offering auto-rickshaw services and payment options like Ola Money. It has also expanded through acquisitions and introducing new services like women-only drivers and subscription passes. Ola aims to be the most sustainable ride-hailing platform through initiatives like introducing electric vehicles to its fleet.
Analysis UBER's strategy.
1. Define the problem UBER has tried to solve. (from both supplier and consumer's points of view)
2. Transportation industry(Taxi) before UBER
3. How UBER business actually works
4. Their international strategy
5. Five forces analysis
6. Challenges and suggestions
Uber uses dynamic pricing, also called surge pricing, where fares are adjusted upwards during periods of high demand to incentivize more drivers to meet rider demand. This strategy allows Uber to maximize supply and demand but has faced challenges from regulators limiting fare increases and from competitors. While Uber has yet to be profitable, its losses are decreasing as it grows and updates its pricing approach, such as showing quoted prices instead of multipliers, though customers still sometimes object to perceived price increases during surges.
Everything has already been said about Uber. Or has it? Both fascinating and repulsive, closely watched by the media and politicians, the Californian unicorn’s growth model hasn’t been spared any sort of criticism.
And yet, valued at $68 billion, the firm mesmerizes VCs as never seen before and inspires every week countless articles, op-eds, infographics and columns – not including numerous bills… It’s because, just like the whole digital revolution, Uber questions every habit, system, model and belief.
In order to go beyond these debates, FABERNOVEL offers an analysis devoid of any political or ideological consideration, a study to understand Uber’s growth model – that we see as viral – and to delve as much as possible into its success factors.
If you’re interested in our work and you wish to organize a presentation for your team, just send us a message at hello at fabernovel.com
The document is a letter from a student named Abu Saleh Al Imran submitting his term paper on the business strategy of Uber in Bangladesh. In the letter, he expresses that he found the assignment useful and enjoyed working on it as it increased his knowledge in the area. He tried his best to meet all the requirements but may have overlooked some aspects unintentionally. He hopes the teacher will consider his limitations and that the report provides some benefit. The letter is signed by Abu Saleh Al Imran and includes his student ID number.
VisionsLive - a provider of online market research tools and services - decided in late 2015, to carry out an un-commissioned piece of research to use as a case study for the online qualitative approach.
The company and brand chosen for this was the global transportation company phenomenon – UBER.
UBER has since changed brand identity, however this piece of research (which was carried out prior to the company’s rebrand), goes some way to validate retrospectively, that these innovative entrepreneurs managed to anticipate the needs of their customers in their quest to drive the brand forward in the global marketplace.
The document also uncovers some quite startling and revealing observations in the way that qualitative research aspires to deliver - not only just information, but also to provide meaningful and actionable insights into what consumers truly think and want by using effective techniques designed to tap into their deeper thoughts and emotions.
SafeMotos is a startup that provides a safer alternative to motorcycle taxis in Africa through a ridesharing app. It tracks driver behavior via smartphone sensors to connect customers to quality drivers. Starting in Rwanda, SafeMotos has completed over 130,000 trips with no serious accidents compared to the national average of 1 serious accident per 14,000 trips. The company aims to improve safety, provide consistent demand for drivers, and offer digital services while taking a commission on each trip.
Avis CAB white paper_Future of MobilitySamantha Lee
The document discusses key themes from a client advisory board meeting hosted by Avis regarding the future of mobility. Experts shared insights on topics like mobility models, the rise of car sharing and integrated mobility solutions. It was noted that while company cars are still commonly used, corporate car sharing has high future interest. Grey fleet, where employees use their personal vehicles for work, was seen as both an opportunity and challenge for the travel industry to address.
This document provides an analysis of UBER in Bangladesh across several sections. It begins with an executive summary highlighting UBER's environmental analysis considering demographic trends, socio-cultural influences, technology factors and more. It then analyzes UBER using Porter's five forces model, IFE/EFE matrices, and VRIO analysis. Competitor and value proposition analyses are also included. The document finds UBER is in a hold and maintain strategy based on IE matrix analysis. It provides possible recommendations including dependence on manpower, customer bargaining power, and pricing models. The two main recommendations are product development and market development.
The following deliverables are carried out:-
1. Brief Overview on UBER
2. Environmental Forces that influences organization n vice-versa.
3. Macro Environment and Competitive Environment
4. Decision Making in UBER
5. Pros and Cons of Group-Decision Making
6. Procedure for making group decisions
7. Encouragement Methods for Creative Decisions
Uber is a global ride-sharing service founded in 2009 that now operates in over 500 cities worldwide. It has faced significant challenges to its brand image due to high-profile scandals involving its executives and attempts to profit from protests. While still the dominant player, competitors like Lyft have gained popularity by prioritizing driver and rider happiness through features like tipping. Other competitors such as Fasten and Flywheel have also emerged with different business models focusing on lower fares for riders or higher pay for drivers.
These slides use concepts from my (Jeff Funk) course entitled Biz Models for Hi-Tech Products to analyze the business model for Uber’s taxi service. Uber’s service enables anyone to provide taxi services and it provides dynamic pricing for better matching of supply and demand. Its value proposition for potential drivers is the opportunity to work as driver on their own hours. Its value proposition for user to lower taxi fares during most times of the day and a higher supply of taxis (and higher prices) during peak demand. The customers are tech-savvy and smart phone users who value their time. Uber receives payments directly from customers and keeps a percentage of these payments as its income. Uber’s patents for a demand-price algorithm represent a barrier of entry and thus a method of strategic control.
Will Uber be successful in Bangladesh??Saymon Percy
Uber has started operations in Bangladesh in 2016 and has been growing steadily with over 15-20 thousand active monthly users and 125,000 Facebook group members. However, it still faces challenges as it operates in the embryonic stage of the industry life cycle with a niche market and lack of awareness. While Uber provides a superior customer experience through its platform innovation and integration with services like Google Maps, it faces threats from potential substitutes and new competitors entering the market. For Uber to succeed in Bangladesh, it needs to strengthen its relationship with the government, improve safety, boost brand loyalty, leverage its first mover advantage, and expand into untouched markets through increased promotions.
Grab is a leading transportation and payment platform in Southeast Asia that has leveraged advances in technology to navigate digitization. It operates in 8 countries and 174 cities, with over 3.5 million rides and 2.3 million driver-partners. Grab aims to disrupt industries through innovations like GrabChat, GrabHitch, and GrabNow, and supports micro-entrepreneurs across 111 cities in Indonesia. The real challenge is not technology itself but how to drive digitization by meeting consumer demand, utilizing new technologies, and providing economic benefits.
It answers the following deliverables:-
1. Ethical Views affection Decision Making in UBER
2. Ways to Guide Future Decision Making in UBER
3. Issues in UBER surrounding Corporate Social Responsibility
4. Manager's Efforts to Reconcile with the Natural Environment
The document discusses the need for evolution in the taxi industry from 1894 to 2012 due to new technologies. It presents a solution as a platform that connects existing taxi companies, black cab services, drivers and passengers to trade orders and cabs. The platform aims to aggregate orders from all local taxi apps. The team behind it consists of serial entrepreneurs, IT experts and developers who previously refused jobs at large companies like Google and HTC.
This document analyzes the financial status of Uber. It discusses Uber's founding in 2009 as a mobile app-based cab service. By 2018, Uber was valued at $72 billion with over $2.5 billion in investments from companies like Google Ventures and Summit. The document reviews Uber's global booking volumes, core financials, cash reserves, debt levels, and strategic partnerships as of Q2 2018. It also outlines Uber's future projects, like investments in self-driving cars from Toyota and flying taxis in France. The conclusion states that Uber is one of the fastest growing cab services due to its affordable prices, good service, and unique offerings that have attracted major investments.
Uber is a network orchestrator that connects passengers with drivers through a mobile app. It operates in 57 countries and 300+ cities. The presentation outlines Uber's business model, customer segments, value propositions, pricing structures, growth strategies, challenges and competitors. It discusses Uber's plans to expand into new services like food delivery to diversify its business and continue strong growth. The presentation also considers whether changing Uber's business model to that of an aggregator could help address some legal and regulatory issues.
The document provides an agenda and overview of an Uber case study presentation. It discusses Uber's founding in 2009, its initial private car service model, and its transition to using an app. The presentation covers Uber's business model, including its value propositions for customers and drivers, profit model, and distribution channels. It also analyzes Uber internally, including its mission and strategies, and externally through PESTEL, 5 forces, and competitor analyses. Recommendations include maintaining consistent pricing, expanding services, and allowing advance reservations.
MKTG1203 presentation "Uber on women's safety"MKTG1203
Marketing Assignment for MKTG1203 at the University of Western Australia. We are looking at Ubers marketing strategies towards women, was to improve them
Uber faces several challenges including continuous losses, increasing competition from companies like Lyft, and past controversies and scandals. To address these challenges, the document recommends that Uber expand into new business lines like food delivery and freight, integrate multiple transportation options into one platform, and invest strategically in areas like acquisitions and self-driving cars to reduce costs and threats from competitors. It also suggests improving security measures and introducing features to make the Uber experience more social and convenient for users.
This document contains a presentation on human resource management practices at Uber. It discusses Uber's organizational structure, recruitment and selection processes, employee benefits, performance appraisal, training and development. It summarizes Uber's mistakes in downplaying HR initially and the events that led to the resignation of former CEO Travis Kalanick, including reports of sexual harassment and a toxic work culture. The presentation concludes with steps Uber has taken to address these issues as part of an initiative called "Uber 2.0".
Ola is an Indian ride-hailing company that was founded in 2010 and has become one of the largest cab aggregators in India. It operates in over 110 cities with over 600,000 vehicles on its platform. To compete with Uber, Ola has adapted its services for Indian users by offering auto-rickshaw services and payment options like Ola Money. It has also expanded through acquisitions and introducing new services like women-only drivers and subscription passes. Ola aims to be the most sustainable ride-hailing platform through initiatives like introducing electric vehicles to its fleet.
Analysis UBER's strategy.
1. Define the problem UBER has tried to solve. (from both supplier and consumer's points of view)
2. Transportation industry(Taxi) before UBER
3. How UBER business actually works
4. Their international strategy
5. Five forces analysis
6. Challenges and suggestions
Uber uses dynamic pricing, also called surge pricing, where fares are adjusted upwards during periods of high demand to incentivize more drivers to meet rider demand. This strategy allows Uber to maximize supply and demand but has faced challenges from regulators limiting fare increases and from competitors. While Uber has yet to be profitable, its losses are decreasing as it grows and updates its pricing approach, such as showing quoted prices instead of multipliers, though customers still sometimes object to perceived price increases during surges.
Everything has already been said about Uber. Or has it? Both fascinating and repulsive, closely watched by the media and politicians, the Californian unicorn’s growth model hasn’t been spared any sort of criticism.
And yet, valued at $68 billion, the firm mesmerizes VCs as never seen before and inspires every week countless articles, op-eds, infographics and columns – not including numerous bills… It’s because, just like the whole digital revolution, Uber questions every habit, system, model and belief.
In order to go beyond these debates, FABERNOVEL offers an analysis devoid of any political or ideological consideration, a study to understand Uber’s growth model – that we see as viral – and to delve as much as possible into its success factors.
If you’re interested in our work and you wish to organize a presentation for your team, just send us a message at hello at fabernovel.com
The document is a letter from a student named Abu Saleh Al Imran submitting his term paper on the business strategy of Uber in Bangladesh. In the letter, he expresses that he found the assignment useful and enjoyed working on it as it increased his knowledge in the area. He tried his best to meet all the requirements but may have overlooked some aspects unintentionally. He hopes the teacher will consider his limitations and that the report provides some benefit. The letter is signed by Abu Saleh Al Imran and includes his student ID number.
VisionsLive - a provider of online market research tools and services - decided in late 2015, to carry out an un-commissioned piece of research to use as a case study for the online qualitative approach.
The company and brand chosen for this was the global transportation company phenomenon – UBER.
UBER has since changed brand identity, however this piece of research (which was carried out prior to the company’s rebrand), goes some way to validate retrospectively, that these innovative entrepreneurs managed to anticipate the needs of their customers in their quest to drive the brand forward in the global marketplace.
The document also uncovers some quite startling and revealing observations in the way that qualitative research aspires to deliver - not only just information, but also to provide meaningful and actionable insights into what consumers truly think and want by using effective techniques designed to tap into their deeper thoughts and emotions.
SafeMotos is a startup that provides a safer alternative to motorcycle taxis in Africa through a ridesharing app. It tracks driver behavior via smartphone sensors to connect customers to quality drivers. Starting in Rwanda, SafeMotos has completed over 130,000 trips with no serious accidents compared to the national average of 1 serious accident per 14,000 trips. The company aims to improve safety, provide consistent demand for drivers, and offer digital services while taking a commission on each trip.
Avis CAB white paper_Future of MobilitySamantha Lee
The document discusses key themes from a client advisory board meeting hosted by Avis regarding the future of mobility. Experts shared insights on topics like mobility models, the rise of car sharing and integrated mobility solutions. It was noted that while company cars are still commonly used, corporate car sharing has high future interest. Grey fleet, where employees use their personal vehicles for work, was seen as both an opportunity and challenge for the travel industry to address.
Autonomous vehicles and their impact on passenger mobility industryAbraham Cherian
This document discusses the potential impacts of autonomous vehicles (AVs) on the passenger mobility industry, including e-hailing services, ride-sharing, and rental car businesses. It covers several shared usage models for AVs, effects of shared AV use like reducing parking needs and changing public transportation, and some potential limitations of AVs like increased vehicle miles from empty repositioning. The widespread adoption of AVs could significantly change transportation systems and business models over the coming decades.
GreenRoad presentation in the future of IoT, connected car and Shared Mobility. Driver Safety and Fleet Management are part of the future of Connected car, Shared Mobility and IoT.
Uber is an on-demand transportation service which has brought a revolution in the taxi industry across the world. Their business model emerged as a disruptive approach to the traditional business model, as it made it possible for people to simply tap their smartphones and have a car arrive at their location in the minimum possible time. It is a service that fits all ages and social groups. Their model is called sharing economy business model, it has recently emerged to create not only financial value but economic value as well.
Also, the sharing economy industry is growing faster than Facebook, Google, and Yahoo combined; therefore, they managed to obtain significant financing from venture capitalists easily.
This document compares Meru Cabs and Uber Cabs in India. It provides background on each company, including their business models, products offered, and revenue sources. Meru Cabs was founded in 2007 in Mumbai and uses a revenue sharing model, while Uber was founded in 2009 in San Francisco and initially used a revenue sharing model before shifting to a partial inventory model. Both companies aim to expand services and introduce new technologies like self-driving vehicles. The document also analyzes the strengths and weaknesses of each competitor.
Competitor Analysis Meru vs Ola cabs _Amit KatyayanAmit Katyayan
Meru Cabs and Ola Cabs are two major transportation network companies in India. Meru Cabs was founded in 2007 and is headquartered in Mumbai, while Ola Cabs was founded in 2010 and is headquartered in Bengaluru. Both companies allow customers to book rides through their mobile apps, websites, and other channels. However, Ola Cabs has expanded to more cities and has a larger fleet and more funding, while Meru Cabs focuses on reliable airport transportation and advanced booking. The document provides a detailed comparison of the business models, strategies, products and performance of the two leading cab aggregator companies in India.
This document provides an overview of vehicle fleet management. It discusses the key areas that must be managed, including vehicle eligibility, private use policies, vehicle selection, purchasing, and financing. The author explains that vehicle management is a complex business discipline that requires applying proven principles to control costs and manage both company vehicles and their drivers effectively over the entire vehicle lifecycle.
A business plan for a new startup business of an online-based, app powered cab service in Pakistan. Marketing strategy has not been included as it was beyond our subject scope.
Ride Sharing App Development- A Gateway to Enhance Travel & Tourism Industry.pdfTechugo
Many fundamental steps are required to create ridesharing apps that are unique and effective. This includes conducting market research, selecting key features, and estimating costs.
There must be two panels, one for riders/passengers and another for drivers. This divides the fundamental elements required to build a rideshare management app.
This article will discuss the features you need to include when working with a ride sharing app development company such as Techugo to build a rideshare app.
The document summarizes an upcoming conference called the Asia Taxi Forum that will be held in Singapore from July 20-22, 2016. The forum will focus on integrating public and private transportation networks. It will bring together taxi operators, government agencies, and transportation companies to discuss challenges facing the taxi industry and latest trends. Over two days, there will be presentations from industry experts on topics like regulating ridesharing services, innovative taxi programs from Australia and New Zealand, balancing private car sharing applications, and using new technologies to improve taxi dispatch and booking. The goal is for attendees to gain insights on managing competition and assessing future challenges in order to better prepare their businesses for changes in the transportation landscape.
Zipcar pioneered the car sharing business model, which allows members to reserve vehicles by the hour or day from a network of reserved parking spots. The summary evaluates Zipcar's initial business plan for its launch in Boston, including a $25 application fee, $300 refundable security deposit, $300 annual fee, and per-hour and per-mile usage fees. It also outlines Zipcar's strategy to handle reservations through its website and phone support, develop wireless in-car technology, and market the service to college-educated individuals in urban areas seeking an alternative to expensive car ownership and parking.
Over-The-Air Care @ Connected Car Expo.Mahbubul Alam
The autonomous vehicle faces many challenges on the road to full autonomy. While semiautonomous features are beginning to appear, fully driverless cars will take time due to the difficulty of teaching vehicles to safely handle complex traffic situations. Updating vehicles continuously via over-the-air software will also be critical. Startups are helping to advance connectivity and mobility solutions in new ways, with 10 highlighted for their innovative potential to transform the industry.
At Finpro's ITS and MaaS seminar on May 4, Martyn Briggs from Frost & Sullivan discussed the converging trends that are leading to shift away from private cars, the new mobility business models that are becoming well established, and the potential impacts these services can realise in our cities now and in the future.
The Sharing Economy in the Transportation IndustryMichaelGraff14
The document summarizes the sharing economy in the transportation industry. It discusses how ridesharing services like Uber satisfy consumer needs for accessibility and flexibility without long-term commitments. It also notes the massive growth potential of the sharing economy from $14 billion in 2014 to an estimated $335 billion by 2025. However, it raises ethical dilemmas around how ridesharing impacts pre-existing taxi companies and drivers. The document proposes a new concept called "UberStock" that would allow drivers to invest in Uber and earn shares in the company from driving, addressing issues around driver compensation.
The business model canvas is a shared language for describing, visualizing, assessing and changing business models. It describes the rationale of how an organization creates, delivers and captures value. The Value Proposition Canvas is a tool which can help ensure that a product or service is positioned around what the customer values and needs
This document proposes a driving skills challenge event for women in Kerala to promote safe and responsible driving. The event would have 140 participants compete in driving tests through obstacles on a race track, with the top 5 winners receiving prizes. It aims to increase women's confidence in driving by showcasing their skills. The proposal outlines the event format, challenges, sponsorship opportunities, and publicity plan to recruit sponsors.
Similar to Bocconi Hakunamatatu - African mini-bus taxis (20)
Understanding how timely GST payments influence a lender's decision to approve loans, this topic explores the correlation between GST compliance and creditworthiness. It highlights how consistent GST payments can enhance a business's financial credibility, potentially leading to higher chances of loan approval.
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
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Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
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Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
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In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
What's a worker’s market? Job quality and labour market tightness
Bocconi Hakunamatatu - African mini-bus taxis
1. TEAM
Alexander
Hazen
Amara
Haba
Lorenzo
Casalini
Mie
Hvas
Sabine
Siller
CEMS 2104 BUSINESS PROJECT ON SUSTAINABLE TRANSPORTATION IN AFRICA
SUPERVISORS
CORPORATE
SUPERVISOR:
Gilbert
Pooley
SUPERVISING
PROFESSOR:
Alberto
Dell’Acqua
UNIVERSITY
SUPERVISOR:
Edoardo
Ambrosi
2. “Matatus
are
possibly
the
most
important
social
space
in
Africa,
its
where
all
aspects
of
a
society
meet…”
Business
Project
28/05/2014
3. “It
would
be
every
matatu
driver’s
dream
to
join
the
company!”
(James,
Nairobi)
-‐
has
been
a
matatu
driver
for
14
years
Why
now?
• Rapid
urbaniza4on
is
exer]ng
pressure
on
public
transporta]on
across
Africa
• Minibuses
are
vital
-‐
for
many
Africans
they
are
the
only
mode
of
transport
available
• Safety
is
a
main
concern
in
an
industry
plagued
by
fatal
accidents
• Local
authori]es
in
these
markets
are
looking
for
solu]ons
to
the
increasing
transporta]on
challenge
where
demand
exceeds
supply
With
Hakuna
Matatu
we
aim
to
improve
the
safety,
comfort,
and
profitability
of
African
public
transport
by
providing
affordable
loans
to
taxi
drivers
in
order
for
them
to
buy
their
own
new
minibus
vehicles
EXECUTIVE
SUMMARY
“Hakuna
Matatu
cuts
out
the
owner
and
empowers
the
driver”
Business
Project
28/05/2014
4. 1. BUSINESS
STRUCTURE
OVERVIEW
2. MARKET
ANALYSIS
AND
COUNTRY
SELECTION
3.
OUR
PRODUCT
4.
BUSINESS
MODEL
COMPONENTS
5. FINANCIALS
6. SOCIAL
IMPACT
7. NEXT
STEPS
AGENDA
1. ISSUE
2. HAKUNA
MATATU
SOLUTION
Business
Project
28/05/2014
5. 1. BUSINESS
STRUCTURE
OVERVIEW
2. MARKET
ANALYSIS
AND
COUNTRY
SELECTION
3.
OUR
PRODUCT
4.
BUSINESS
MODEL
COMPONENTS
5. FINANCIALS
6. SOCIAL
IMPACT
7. NEXT
STEPS
AGENDA
1. ISSUE
2. HAKUNA
MATATU
SOLUTION
Business
Project
28/05/2014
6. “The
African
Region
possesses
only
2%
of
the
world’s
vehicles
but
contributes
16%
to
the
global
deaths…
and
the
matatu
industry
trains
criminals…the
majority
are
not
qualified
drivers
and
have
bad
habits…”
(Global
Status
Report
on
Road
Safety,
WHO,
2013)
(James,
matatu
driver
in
Nairobi))
Business
Project
28/05/2014
7. Taxi
Owner
Driver
Daily
rent
Mini-‐van
Simple
rent
No
guarantees
and
no
independence
ISSUES:
1)
Lack
of
safety
and
comfort
for
passengers
2)
High
rents
for
old
vans
which
need
a
lot
maintenance
and
are
unsafe
3)
No
job
security:
no
chance
for
drivers
to
own
a
van
due
to
lack
of
access
to
capital
4)
No
protec4on
from
owners
towards
corrup]on
5)
Irresponsible
behavior
to
increase
daily
revenues
6)
Drivers
work
incredibly
long
hours
but
earn
just
enough
to
maintain
their
family
7)
Bad
fame
of
drivers
(sex,
drugs
and
alcohol)
Notwithstanding
the
problems,
it
is
s]ll
a
very
appealing
business:
-‐
One
of
the
few
businesses
which
provides
immediate
cash
at
the
end
of
the
day
-‐
No
need
for
sophis]cated
qualifica]ons
-‐
Strong
commitment
of
the
majority
of
the
drivers
-‐
Examples
of
innova]ons
in
the
sector
(e.g.
Wi-‐Fi
on
bus,
geo-‐localized
ads,
mobile
payments)
-‐
Passengers
desire
safer
more
reliable
service
ISSUE:
The
exis4ng
business
structure
is
based
on
an
informal
sector,
characterized
by
obsolete
vehicles,
no
job
security
and
thin
profits
for
drivers
Driver
rents
the
minivan
on
a
daily
basis
and
reckless
driving
habits,
adopted
to
maximize
daily
revenue,
are
at
the
basis
of
extremely
low
safety
in
the
industry.
Business
Project
28/05/2014
8. Owner
%
Ad
revenue
share
Daily
Mobile
repayment
Adver4sers
Ad
revenues
Ad
slots
Driver
Banks
and
Capital
providers
Company
$
$
Training
and
support
MINI-‐VAN
Taxi
ownership
Independent
entrepreneur
Business
model;
essen]al
compe]]ve
advantages:
1)
SAFETY
AND
COMFORT:
newer
vehicles,
with
longer
lifespan,
less
pollu]ng,
more
reliable
(à
higher
fares)
2)
MOBILE
REPAYMENTS:
daily
repayment
of
the
vehicle
trough
mobile-‐phone
to
overcome
need
for
bank
account
3)
ENTREPRENEURS:
elimina]on
of
“owners”
from
value
chain
to
make
local
drivers
independent
entrepreneurs
4)
ADDITIONAL
REVENUE:
streams
from
adver]sing,
both
outside
and
inside
the
vehicle,
and
from
radio
5)
SOLIDARITY:
drivers
are
gathered
in
groups
of
5
and
they
are
all
responsible
for
each
other’s
repayment
“Matatu
drivers
have
the
bad
reputaSon
of
causing
accidents
and
many
drive
under
the
influence
of
drinks
or
drugs”
(James,
Nairobi)
“We
are
lucky
that
its
God
judging
us,
otherwise
we
would
be
the
most
cursed
human
beings
on
earth”
(James,
Nairobi)
SOLUTION:
Disrup4ve
business
model
that
eliminates
one
step
from
the
value
chain
and
empowers
local
drivers,
provides
them
with
safer
vehicles,
new
revenue
streams
and
mobile
repayment
of
the
minivan
Business
Project
28/05/2014
9. PROBLEMS
IMPROVEMENTS
q Highest
road
fatality
rates
of
all
the
world
in
Africa
and
the
region
lacks
laws
and
enforcement
q Low
safety:
obsolete
vehicles
result
in
higher
opera]ng
costs
and
danger
q Reckless
driving
to
maximize
daily
revenues
so
to
cover
daily
rent
q Most
profits
appropriated
by
owners
q High
job
insecurity
q No
access
to
credit
to
finance
own
venture
q No
educa4on
q Lack
of
entrepreneurial
mindset
q Newer
vehicles
to
increase
safety
and
comfort
and
lower
opera]ng
costs
q Educa4on
to
instruct
drivers
about
loan
repayment
and
implica]ons
and
to
ensure
safe
driving
styles
q Elimina4on
of
owners
from
the
value
chain
q Addi4onal
revenue
streams
via
adver]sements
q Entrepreneurial
a]tude
–
possibility
to
own
the
vehicle
q Access
to
finance
via
daily
reimbursement
+
group
liability
q Mobile
repayments
for
increased
security
+
ability
to
track
payments
EMPLOYEEE
ENTREPRENEUR
DANGER
SAFETY
AND
COMFORT
“We
are
the
backbone
of
Kenya’s
black
market…”
(James,
Nairobi)
IMPROVEMENTS
SPILL-‐OVER:
The
transforma]on
of
drivers
from
underpaid
employees
to
entrepreneurs
addresses
current
problems
in
the
industry,
improves
the
service
and
ensures
more
safety
for
passengers
Business
Project
28/05/2014
10. 1. BUSINESS
STRUCTURE
OVERVIEW
2. MARKET
ANALYSIS
AND
COUNTRY
SELECTION
3.
OUR
PRODUCT
4.
BUSINESS
MODEL
COMPONENTS
5. FINANCIALS
6. SOCIAL
IMPACT
7. NEXT
STEPS
AGENDA
1. MACRO
ANALYSIS
2. VOICES
FROM
AFRICA
Business
Project
28/05/2014
11. Douala
Ibadan
Abidjan
Abuja
Accra
Addis
Ababa
Cape
Town
Dakar
Dar
es
Salaam
Douala
Durban
Harare
Ibadan
Johannesburg
Kano
Kinshasa
Khartoum
Lagos
Luanda
Lusaka
Mombasa
Nairobi
0,00
0,20
0,40
0,60
0,80
1,00
0,10
0,20
0,30
0,40
0,50
0,60
0,70
0,80
0,90
1,00
REPLACEMENT
GROWTH
POTENTIAL
AFRICAN
CITY
ANALYSIS
Abidjan
Abuja
Accra
Addis
Ababa
Cape
Town
Dakar
Dar
es
Salaam
Douala
Durban
Harare
Ibadan
Johannesb
urg
Kano
Kinshasa
Khartoum
Lagos
Luanda
A
market
analysis
of
the
minibus
industry
in
20
African
lion
ci]es
shows
that
6
hubs
are
par4cularly
a`rac4ve
when
considered
along
the
dimensions
of
industry
growth
poten4al
and
replacement
need
The
model
is
based
on
a
comparison
of
variables
across
the
different
markets:
Industry
growth
poten4al
The
model
is
based
on
a
comparison
of
variables
across
the
different
markets:
-‐ Industry
growth
poten4al:
Labor
force
par]cipa]on,
vehicle
ownership,
popula]on,
Popula]on
growth
CAGR
2010-‐2025,
GDP
growth
CAGR
2010-‐2025,
public
transport
alterna]ves,
regula]on
-‐
Replacement
need:
Exis]ng
fleet
size
Business
Project
28/05/2014
12. NAIROBI
ABIDJAN
LUANDA
DAR
ES
SALAAM
LAGOS
KINSHASA
PRICE
OF
CAR
$
20.900,00
$
20.900,00
$
20.900,00
$
20.900,00
$
20.900,00
$
20.900,00
TRANSPORTATION
$
1.500
$
1.500
$
1.500
$
1.200
$
1.200
$
1.200
IMPORT
TAX
$
13.000
$
9.000
$
9.000
$
10.000
$
9.000
$
7.315
CAPEX
TOTAL
$
35.000
$
31.400
$
31.400
$
30.700
$
29.700
$
29.415
INSURANCE
$
900
$
1.000
$
900
$
800
$
800
$
900
ROAD
FUND
TAX
$
150
$
150
$
150
$
150
$
150
$
150
MAINTENACE
OF
CAR
$
2.000
$
3.243
$
1.700
$
2.500
$
2.000
$
2.620
PETROL
$
3.250
$
3.545
$
1.334
$
2.660
$
1.660
$
3.792
DRIVER
ASSISTANT
$
260
$
260
$
260
$
260
$
260
$
260
OPEX
TOTAL
$
6.560
$
8.198
$
4.344
$
6.370
$
4.870
$
7.722
DEPRECIATION
$
2.127,95
$
2.127,95
$
2.127,95
$
2.127,95
$
2.127,95
$
2.127,95
An
in-‐depth
cost
analysis
across
six
most
interes]ng
ci]es
shows
that
import
tax
and
petrol
price
are
main
costs
drivers
$35.000,00
$31.400,00
$31.400,00
$30.700,00
$29.700,00
$29.415,00
$6.560,00
$8.198,00
$4.344,00
$6.370,00
$4.870,00
$7.722,00
$-‐
$5.000
$10.000
$15.000
$20.000
$25.000
$30.000
$35.000
NAIROBI
ABIDJAN
LUANDA
DAR
ES
SALAAM
LAGOS
KINSHASA
Capex
and
Opex
in
6
African
ci4es
CAPEX
TOTAL
OPEX
TOTAL
Business
Project
28/05/2014
13. Popula4on
(million)
Popula4on
CAGR
2010-‐2025
GDP
CAGR
2010-‐2025
City
level
Labour
par4cipa4on
rate
Vehicle
ownership
Exis4ng
fleet
size
Regula4on
Public
transport
alterna4ves
Local
insight
Recommenda4on:
Poten4al
as
pilot
Lagos
11
3.8%
7%
56%
8%
75.000
moderate
moderate
• Fierce
compeSSon
• Mix
of
new
and
old
vehicles
• Traffic
congesSon
is
a
bigger
concern
than
safety
and
comfort
High
Nairobi
3
3.9%
7%
67%
3.4%
12.000
moderate
low
• Intense
compeSSon
• Old
vehicles
(10-‐15
years)
are
common
• Accidents
are
a
major
concern
High
Kinshasa
8.5
3.7%
8%
43%
0.5%
1.200
low
low
• Minibuses
are
very
important
because
they
are
cheaper
–
people
are
poor
• CondiSons
are
very
bad
• Ge_ng
from
A
to
B
is
the
main
concern
–
not
safety
and
comfort
Medium
Abidjan
4
3.5%
5%
65%
2.4%
5.000
low
moderate
• Minibuses
are
in
bad
condiSon
• There
is
space
for
a
new
compeStor
• Safety
is
a
main
issue,
comfort
less
so
as
the
buses
are
used
for
short
distances
mainly
Medium
Dar
Es
Salaam
3.5
5.2%
8%
86%
2.2%
8.500
low
low
• The
rise
in
populaSon
exerts
considerable
pressure
on
road
infrastructure
• The
city
is
launching
the
DART
project
with
many
new
low
carbon
buses
Low
Luanda
5
4.2%
10%
70%
1.1%
8.000
moderate
low
• Minibuses
are
generally
well
maintained
and
safe
• Fares
are
non-‐negoSable
and
set
in
advance
Low
Lagos
and
Nairobi
stand
out
as
poten4al
pilots
when
the
markets
are
compared
considering
growth
and
replacement
poten]al
Business
Project
28/05/2014
14. NAIROBI
LAGOS
PRICE
OF
CAR
$
20.900,00
$
20.900,00
TRANSPORTATION
$
1.500
$
1.200
IMPORT
TAX
$
13.000
$
9.000
CAPEX
TOTAL
$
35.000
$
29.700
INSURANCE
$
900
$
800
ROAD
FUND
TAX
$
150
$
150
MAINTENACE
OF
CAR
$
2.000
$
2.000
PETROL
$
3.250
$
1.660
DRIVER
ASSISTANT
$
260
$
260
OPEX
TOTAL
$
6.560
$
4.870
DEPRECIATION
$
2.127,95
$
2.127,95
10%
2%
23%
37%
3%
25%
Capex
NAIROBI
INSURANCE
ROAD
FUND
TAX
MAINTENACE
OF
CAR
PETROL
DRIVER
ASSISTANT
DEPRECIATION
11%
2%
29%
24%
4%
30%
Capex
LAGOS
INSURANCE
ROAD
FUND
TAX
MAINTENACE
OF
CAR
PETROL
DRIVER
ASSISTANT
DEPRECIATION
Even
if
Luanda
is
financially
arrac]ve
due
to
lower
taxes
and
fuel
cost,
the
focus
is
on
Nairobi
and
Lagos
as
those
ci]es
berer
respect
a
wider
range
of
selec]on
criteria
Lagos
has
compe]]ve
Capex
and
Opex
costs
whereas
Nairobi
has
higher
Capex
due
to
high
import
tax
Nairobi’s
new
vehicle
compe]]veness
needs
to
be
further
inves]gated
in
order
to
ensure
profitability
Although
Nairobi
has
significant
Capex
it
is
an
interes]ng
pilot
city
considering
macro
analysis
results.
Business
Project
28/05/2014
16. “We
are
mostly
concerned
about
how
to
beat
the
traffic
and
get
to
where
we
are
going
on
Sme.
We
can
hear
some
passengers
urging
the
driver
someSmes
to
pass
alternate
routes
or
to
pass
the
road
filled
with
dirt
just
to
arrive
on
Sme
at
our
desSnaSon.
Safety
is
usually
the
second
or
last
thing
on
the
minds
of
most
passengers.”
(Jesse,
Lagos)
“Accident
is
the
worst
nightmare
for
any
matatu
worker
and
even
the
passengers”
(James,
Nairobi)
“CondiSons
are
very
bad
security
and
comfort
are
not
the
priority,
going
from
point
A
to
B
is
the
main
thing.”
(Sofia,
Kinshasa)
“Nigeria,
DRC
,
Ethiopia,
Kenya,
South
Africa,
Tanzania
and
Uganda,
are
responsible
for
64%
of
all
road
deaths
in
the
region“
(WHO,
2013)
Road
deaths
per
100.000
popula4on
(WHO,
2010)
We
address
an
actual
need
for
safety
and
reliability
to
meet
the
main
concerns
of
ci]zens
Business
Project
28/05/2014
17. “The
danfos
are
very
old.
Only
maybe
10%
look
like
they
are
not
going
to
break
down.
90%
are
probably
plus
20
years
old”
(Meghan,
Lagos)
“Majority
are
old
vehicles
between
10
and
15
years.
(…)
In
the
current
transport
market,
the
average
matatu
is
8—9
years
old.
This
is
not
the
year
of
manufacture
since
most
of
these
vehicles
are
second
hand
imported
from
Dubai
and
Japan”
(James,
Nairobi)
“These
services
are
in
poor
condiKon,
with
no
informaSon
on
the
driver
profile
or
even
employers”
(Philippe,
Abidjan)
“Safety
is
important,
yes,
but
comfort
is
perhaps
more
important,
and
traffic
congesSon
is
a
big
issue.
Traffic
is
so
bad
it
can
take
3
hours
to
go
20
minutes”
(Kemi,
Lagos)
Across
the
minibus
industry
in
Africa
there
is
a
need
for
new
vehicles
and
an
increase
in
comfort
Business
Project
28/05/2014
18. ”More
or
less
90%
of
the
populaKon
depends
on
minibuses
to
get
to
and
from
work”
(Sofia,
Kinshasa)
“For
most
ciSzens
it
is
the
only
transport
mode
available”
(James,
Nairobi)
“Danfos
are
important
for
the
low
income
segment,
including
young
professionals
who
can’t
afford
to
commute
in
any
other
way”
(Meghan,
Lagos)
"Public
transport
is
a
big
headache
to
me.
If
I
don't
wake
up
early,
I
find
no
bus
at
all
to
take
me
to
work”
(Tumaini
Masawe,
Dar
es
Salaam
Minibuses
play
a
vital
part
in
urban
transport
with
high
and
constant
demand
Business
Project
28/05/2014
19. “A
mandatory
control
backed
by
the
government
could
help
change
the
poor
condiSon
of
minibuses”
(Philippe,
Abidjan)
“Empowering
the
drivers
to
have
full
control
of
the
profit
and
have
the
responsibility
to
maintain
the
vehicles
would
see
many
vehicles
well
driven
and
beOer
maintained
as
compared
to
the
current
state
where
they
have
to
seek
approval
from
the
owner
event
in
cases
like
sensiSve
repair
like
brakes
and
excess
smoke”
(James,
Nairobi)
“The
main
cause
(red:
of
the
poor
condi]ons)
can
only
be
finance.
For
an
investor
to
upgrade
his
fleet;
he
must
be
making
profit.
The
problem
is
with
most
of
those
who
own
the
14
seaters.
The
income
is
not
that
big
and
the
maintenance
cost
is
high.
Many
of
the
current
owners
bought
the
vans
amer
the
law
was
passed
that
the
government
will
no
longer
register
cars
over
10
years”
(James,
Nairobi)
An
innova4ve
financing
solu4on
can
change
the
industry
Business
Project
28/05/2014
20. -‐ “the
matatu
industry;
with
its
flexible
operaSons
and
intense
compeSSon
it
omen
appears
“chaoKc”.
Yet
it
is
a
system
involving
very
diverse
vehicle
owners,
insurance
companies,
route
associaSons,
drivers,
touts,
route
managers,
mechanic;
And,
of
course,
the
users.”
-‐
It
is
an
industry
that
is
most
ciSed
for
lack
of
management
and
no
procedures.
These
include
no
schedules,
fluctuaSng
fares,
undesignated
stops
and
someSmes
routes,
compeSSon
on
the
road,
formaSon
of
cartels,
poor
working
condiSons
for
labour
and,
on
the
posiSve
side,
flexibility
and
demand
responsiveness.”
(James,
Nairobi)
Nairobi’s
taxi
industry
is
chaoKc
but
flexible
-‐ Kenya
is
technologically
the
most
advanced
countries
in
Sub-‐Saharan
Africa.
-‐ There
are
several
widespread
innova4ve
products/services
that
could
strengthen
our
offer:
-‐ Mobile
payment
is
widespread
-‐ Innova4ve
adver4sement
op]ons
exist
Complementary
services
are
already
established
in
the
Kenyan
market
-‐ The
majority
of
matatus
are
old
(10
to
15
years)
-‐ The
industry
is
highly
fragmented
and
largely
informal
-‐ Buying
a
matatu
is
a
substan4al
investment
many
drivers/Kenyans
can’t
afford.
-‐ The
industry
is
regulated
under
the
Ministry
of
Transporta4on
and
Infrastructure,
including
registra]on,
inspec]on
and
licensing
of
vehicles,
tes]ng
of
drivers
and
road
safety
Industry
is
fragmented,
informal,
and
perceived
as
risky
-‐ For
a
large
part
of
the
urban
popula]on
it
is
the
only
mode
of
transport
-‐ The
local
authori4es
do
not
offer
a
viable
alterna4ve
to
the
matatus
-‐ In
addi]on
to
matatus
on
the
private
market
there
are
motorcycle
taxies,
regular
taxis
and
bicycles
Taxis
are
vital
/
“only”
public
transport
PPP
$860
(2012)
Exis]ng
Fleet
Size
12.000
Size
of
ac]ve
Workforce
2.172.027
Vehicle
Ownership
%
3,4%
Nairobi
is
the
second
largest
market
with
low
vehicle
ownership
Nairobi
is
a
pilot
market
due
to
its
size,
dependence
on
mini-‐vans,
mature
complimentary
services
and
opportuni]es
for
improvements
in
safety
Business
Project
28/05/2014
21.
-‐ Deteriora4on
in
the
transport
system
infrastructure
due
to
bad
management
of
transport
infrastructure
by
Lagos
State
Government
(LASG)
-‐ Public
transport
in
Lagos
depends
on
private,
largely
informal,
minibus
services,
taxies
and
motorcycles
-‐ The
number
of
privately
owned
vehicles
is
rela]vely
high,
but
as
a
mode
of
transport
is
reserved
for
the
wealthy
Taxies
are
vital
for
the
large
low-‐income
segment
-‐ Lagos
is
also
fairly
technologically
advanced
in
the
Sub-‐Saharan
context
(e.g
Nollywood)
-‐ Adver4sement
is
a
normal
secondary
revenue
stream
in
the
city,
on
houses
etc.,
and
could
also
strengthen
our
offer
-‐ Radio
taxi
services
and
apps
to
order
taxies
exist
Complementary
services
and
advanced
taxi
services
exist
in
the
market
-‐ The
industry
is
fragmented,
80%
of
owners
own
one
vehicle
and
rents
out
to
drivers
on
daily
basis
-‐ Danfos
are
restricted
from
opera]ng
in
certain
areas
of
the
city
-‐ The
industry
is
s]ll
largely
informal,
-‐ Local
authori4es
inspect
vehicles
for
roadworthiness,
but
weak
ins]tu]onal
enforcement.
Private
sector
inspec4on
garages
and
new
test
for
vehicles
that
are
more
than
5
years
old
recently
introduced
Industry
is
fragmented,
informal
and
confined
to
certain
areas
of
the
city
-‐ “Danfos
are
not
well
maintained.
They
are
involved
in
accidents
and
most
do
not
have
spare
tyres.
Maybe
condiKons
could
be
improved
if
people
pay
more.
I'm
not
sure.
I
know
that
people
in
some
regions
of
the
town
will
pay
more
for
newer
more
comfortable
cars.
But
most
Smes
it
is
about
what
is
available.
If
the
comfortable
cars
will
be
well
spread
and
readily
available,
taxi
users
may
opt
for
them.”
(Jesse,
Lagos)
Lagos’
minibus
market
is
underserved
PPP
$1,440
(2012)
Exis]ng
Fleet
Size
75.000
Size
of
ac]ve
Workforce
5.998.128
Vehicle
Ownership
%
7,9%
Lagos
is
the
largest
market
with
a
huge
commuKng
workforce
Lagos
is
a
pilot
market
due
to
its
absolute
size,
dependence
on
minibuses
and
fragmented
industry.
It
is
also
the
city
with
the
highest
fatal
accident
rate
in
Africa
Business
Project
28/05/2014
22. 1. BUSINESS
STRUCTURE
OVERVIEW
2. MARKET
ANALYSIS
AND
COUNTRY
SELECTION
3.
OUR
PRODUCT
4.
BUSINESS
MODEL
COMPONENTS
5. FINANCIALS
6. SOCIAL
IMPACT
7. NEXT
STEPS
AGENDA
Business
Project
28/05/2014
23. Owner
Adver4sers
Driver
Banks
and
Capital
providers
Company
$
$
A
focus
on
the
model:
from
Applica]on
to
Ownership
in
eight
simple
steps
–
how
Hakuna
Matatu
will
eliminate
the
owner
from
the
value
chain
and
engage
him
in
a
learning
process
Business
Project
28/05/2014
1.
Applica4on
2.
Screening
3.
Grouping
4.
Training
5.
Vehicle
checks
6.
Compliance
controls
7.
Addi4onal
benefits
8.
Vehicle
Ownership
24. 1. BUSINESS
STRUCTURE
OVERVIEW
2. MARKET
ANALYSIS
AND
COUNTRY
SELECTION
3.
OUR
PRODUCT
4.
BUSINESS
MODEL
COMPONENTS
5. FINANCIALS
6. SOCIAL
IMPACT
7. NEXT
STEPS
AGENDA
1. DRIVERS’
PERSPECTIVE
2. HAKUNA
MATATU
PERSPECTIVE
Business
Project
28/05/2014
25. Drivers’
perspec]ve
• Entrepreneurial
empowerment
• Higher
profitability
• Long
term
incen4ves
Business
Project
28/05/2014
26. Drivers
will
go
through
an
easy
step-‐by-‐step
process
with
the
possibility
to
become
owners
already
within
three
years
We
empower
minibus
taxi
drivers
to
invest
in
themselves,
their
families
and
their
futures.
• Ini]al
mee]ngs
with
drivers
• Presenta]on
of
value
proposi]on
Introduc4on
Period
0
• Forma]on
of
solidarity
groups
• 3-‐week
training
on
safety,
vehicle
maintenance,
customer
service
and
repayment
of
loan
• Transfer
of
vehicle
to
driver
Solidarity
grouping
Period
1
(1
-‐3
months)
• Daily
repayment
of
loan
through
mobile
platorm
(45$/day)
• Monthly
vehicle
checks
Vehicle
checks
Period
2
(for
3
years)
• Minibus
taxi
drivers
have
the
chance
to
get
micro-‐loans
for
their
wives,
allowing
them
to
start
a
business
and
to
increase
the
wealth
of
the
family
Microcredit
for
wives
Period
3
(amer
6
months
of
successful
repayments)
• Complete
repayment
of
loan
• Ownership
of
vehicle
is
handed
over
to
driver
• Driver
increases
take-‐home
income
• New
services
to
driver
Ownership
Period
4
(from
3
years
onwards)
ENTREPRENEURIAL
EMPOWERMENT:
Auer
the
educa]onal
process
and
successful
repayment,
drivers
become
owners
and
benefit
from
increased
revenues,
job
security
and
berer
planning
for
the
future
"My
son
goes
to
school
and
says,
“My
dad
is
a
matatu
driver”
He’s
like,
“What?
A
matatu
driver?”
It
doesn’t
give
you
pride
to
be
a
matatu
driver.”
(James,
Nairobi)
“Every
Sme
somebody
finishes
a
loan,
it
can
literally
become
a
vehicle
out
of
poverty”
(Michael
Wilkerson,
Tugende)
Business
Project
28/05/2014
27.
Drivers
income
will
increase
drama4cally
1.
MORE
CUSTOMERS
AND
HIGHER
PRICES
The
new
minibus
increases
safety
and
comfort,
which
will
arract
more
customers
and
allow
to
charge
higher
prices
2.
LOWER
MAINTAINANCE
COSTS
AND
FUEL
EFFICIENCY
The
new
minibus
reduces
the
number
of
breakdowns
and
thus
minimizes
lost
revenues
due
to
repairs
3.
ADDITIONAL
REVENUES
FROM
ADVERTISING
With
millions
of
people
using
minibuses
to
commute
to
and
from
work
every
day,
minibuses
present
a
huge
opportunity
for
brands
to
engage
consumers
and
adver]se
their
products,
resul]ng
in
an
addi]onal
revenue
stream
for
owners
-‐
Outside
the
bus
(bigger
brands/partners)
-‐
Inside
the
bus
(local
entrepreneurs
e.g.
FlashCast)
-‐
Selected
radio
staSon
tuned
in
for
the
whole
dura]on
of
shiu
$-‐
$20,00
$40,00
$60,00
$80,00
NIGERIA
KENYA
Daily
income
evolu4on
Old
New
New
auer
vehicle
repayment
$-‐
$50,00
$100,00
$150,00
old
new
$6,16
$17,78
Higher
revenue
–
Lower
costs
=
INCREASED
PROFITS
Revenues
Running
Costs
Fee
to
Owner
Income
HIGHER
PROFITABILITY:
Increased
daily
income
is
key
for
incen]vizing
drivers
to
change
current
industry
organiza]on
and
adhere
to
Hakuna
Matatu’s
proposi]on
Business
Project
28/05/2014
28. ✔
X
X
Toyota
Hiace
is
the
best
fit:
high
availability
of
parts
at
cheap
prices
and
diesel
engine
are
key
in
minimizing
running
costs
Nissan
NV
350
Tata
Winger
Toyota
Hiace
€
20.990
Higher
comfort
16
seats
New
model
Only
petrol
Few
spare
parts
2
WD
Expensive
parts
€
9.410
Low
tech
7
seats
Few
spare
parts
Only
diesel
Not
solid
for
minibus
2
WD
€
20.900
4
WD
16
seats
Best
value
for
money
Petrol
/
Diesel
Spare
parts
available
and
cheap
Business
Project
28/05/2014
29. q Auer
repayment
we
want
to
avoid
misuse
of
highly
increased
income;
the
reinvestment
of
a
por]on
will:
ü Reduce
risk
of
misuse
ü Result
in
addi4onal
income
ü Help
finance
other
further
ventures
-‐50%
-‐43%
7%
-‐38%
-‐46%
16%
-‐43%
0%
57%
T0
T1
T2
Daily
revenue
breakdown:
3
stages
evolu4on
q Drivers
will
keep
an
increasing
share
of
the
revenue
they
make
every
day:
ü T0:
Current
situa]on;
drivers
pay
fee
to
owner
ü T1:
Repayment
phase;
fee
to
Hakuna
Matatu
ü T2:
Vehicle
ownership;
no
more
fees
$-‐
$10,00
$20,00
$30,00
$40,00
$50,00
$60,00
$70,00
Old
New
New
auer
vehicle
repayment
Help
Drivers
become
entrepreneurs
by
inves]ng
in
income
producing
assets
INCENTIVES
TO
THINK
LONG
TERM:
Over
]me,
drivers
will
get
an
increasingly
bigger
share
of
daily
revenues,
that
combined
with
assistance
for
investment
opportuni]es
aims
at
co-‐crea]ng
value
Business
Project
28/05/2014
30. Company’s
perspec]ve
• Lending
solu4on
between
Hakuna
Matatu
and
banks
• Lending
solu4on
between
Hakuna
Matatu
and
drivers
• Mobile
repayment
Business
Project
28/05/2014
31. LENDING
SOLUTION:
Hakuna
Matatu
owns
the
mini-‐vans
and
has
full
control
over
its
assets
un]l
they
are
fully
repaid,
giving
the
company
strong
bargaining
power
towards
incompliant
drivers
HAKUNA
MATATU
WILL
ACT
AS
A
FINANCIAL
INTERMEDIARY
BETWEEN
BANKS
AND
THE
DRIVERS
à It
is
easier
to
contract
loans
à We
buy
the
mini-‐vans
and
provide
them
to
the
drivers,
which
start
to
repay
the
vehicle
from
the
very
first
day
This
makes
the
company
liable
for
the
contracted
loans…
BUT
We
reduce
the
default
risk
since
this
model
ensures
full
property
and
control
over
the
asset
and
the
right
to
confiscate
the
mini-‐van
in
case
of
non-‐repayment
or
compliance
Case
study
1:
Three
wheels
United
vs
Hakuna
Matatu.
How
we
improved
an
already
successful
model
Bank
lends
money
to
Hakuna
Matatu
Hakuna
Matatu
buys
Hiace
from
Toyota
to
sell
them
back
to
selected
drivers
Drivers
leases
car
from
Hakuna
Matatu
and
has
to
pay
daily
fix
amount
Driver
pays
10%
upfront
of
the
car
to
the
bank
Bank
lends
85
%
of
the
price
of
the
car
to
driver
TWU
provides
the
remaining
5
%
as
a
loan
to
the
driver
TWU
has
no
control
over
the
driver
and
the
car.
Although
they
provide
only
5
%,
they
have
no
guaranty
in
case
of
default
Hakuna
Matatu
has
a
control
and
power
of
the
cars
as
they
own
them.
In
case
of
default,
the
car
can
be
confiscated
“I
think
your
model
is
beper
than
ours
because
you
own
and
have
full
control
over
the
asset!”
(Ramesh
Prabhu,
CEO
TWU)
Business
Project
28/05/2014
32. What
happens
in
case
of
non-‐payment?
Solidarity
lending
Prior
no]ce
of
non-‐
payment
A
driver
needs
to
inform
us
in
advance
if
he
won’t
be
able
to
make
a
payment.
If
drivers
let
us
know
about
their
problem,
we
can
work
with
them
to
come
up
with
a
solu4on.
Without
prior
no]ce
of
non-‐
payment
If
a
driver
misses
a
payment
without
prior
no]ce,
we
will
impound
the
minibus.
The
driver
has
one
chance
to
show
he
is
serious
about
repaying
the
loan.
Auer
the
payment
of
the
impounding
fee,
the
driver
will
get
back
his
minibus.
If
a
drivers
misses
a
second
payment
without
prior
no]ce,
we
will
take
back
the
minibus
and
give
it
to
another
driver.
“Seven
out
of
the
nine
organizaSons
we
currently
work
with,
use
group
lending
as
their
primary
lending
methodology.
I
think
that
it
is
a
very
effecSve
mechanism
to
counter
the
lack
of
quanStaSve
(financial)
data
on
borrowers
that
you
can
base
lending
decisions
on.”
(Cameron
Goldie-‐Scot,
Musoni)
LENDING
SOLUTION:
Solidarity
lending
allows
to
overcome
the
lack
of
a
tradi]onal
collaterals
and
results
in
individual
accountability
from
group
pressure,
peer
monitoring
and
ul]mately
in
high
loan
repayment
rates
Solidarity
lending
levers
social
capital:
• peer
pressure
• mutual
support
• healthy
culture
of
repayment.
Drivers
will
be
grouped
in
clusters
of
5
individuals.
The
group
structure
creates
financial
incen]ves
for
drivers
to
monitor
one
another.
A
driver
who
may
otherwise
have
defaulted
on
his
loan
may
be
induced
to
pay
by
pressure
from
his
co-‐members,
who
would
be
held
responsible
for
any
shortall.
For
drivers
it
is
easier
to
perform
the
monitoring
and
join
the
service
through
pre-‐exis4ng
social
rela4ons
and
local
communi]es.
Business
Project
28/05/2014
33. Percentage
of
mobile
phone
users
that
regularly
make
or
receive
mobile
payments
COMPANY
AS
INTERMEDIARY
BETWEEN
BANKS
AND
DRIVERS
We
eliminate
the
interac4on
between
drivers
and
banks
1)
Easier
to
track
for
company
2)
Less
cash-‐related
risk
3)
Drama]c
administra4ve
costs
reduc4on
4)
No
need
for
physical
proximity
5)
We
make
the
business
formal
-‐ Daily
repayment
via
SMS
-‐ Specific
quan4ty
(45$/day)
à
intui]ve
and
safer
(quan]fied
on
IMPLICIT
interest
rate).
Drivers
don’t
save
-‐ One
company
account
which
collects
all
payments
-‐ Mobile
payments
and
smartphone
penetra4on
on
the
rise
EASY
ACCESS
TO
VEHICLE
REPAYMENT:
A
mobile
payment
platorm
makes
repayments
of
mini-‐van
quicker,
easier
and
eliminates
the
need
of
bank
accounts
for
drivers
Business
Project
28/05/2014
34. Musoni
is
the
first
MFI
globally
to
go
100
%
mobile,
enabling
clients
to
receive
their
loan
disbursements,
repay
loans
and
deposit
savings
using
exis]ng
MMT
products.
Less
paperwork
means
focused
energy
on
offering
customers
more
face
4me
and
superior
service
with
high
quality
reports
and
Integrated
accoun4ng
platorm
that
also
considers
Progress
out
of
poverty
Index
(PPI)
to
track
social
improvement
Musoni’s
advantages
for
itself
and
its
clients
were
reviewed
in
prac]ce
and
with
clients
and
the
findings
are
:
1. Efficient
processing
of
data
with
reduc4on
of
errors
in
administra4on
2. Flexibility
and
4me
efficiency
3. Easier
expansion
to
rural
areas
4. Cash-‐less
opera4ons
means
lower
branch
infrastructure
and
security
costs
Reduc4on
of
transac4on
costs
for
clients
(up
to
40
%),
Reduc4on
of
real
interest
costs
(up
to
20
%)
30.000
end
clients
served
in
a
year
5
million
$
outstanding
porsolio
Winner
“most
innovaSve
use
of
technology”
2011
Global
Microfinance
Award
MOBILE
PAYMENT
IMPLEMENTATION:
The
Musoni
System
souware
has
been
iden]fied
as
an
interes]ng
solu]on
to
manage
mobile
repayments
Case
study
2:
Musoni
takes
the
tradi4onal
microfinance
experience
to
the
next
level
“When
managed
well,
microfinance
loans
to
the
poor
are
repaid
more
reliably
than
tradiSonal
banking
loans
to
those
with
larger
incomes“
(Freddie
Racosas
Acosta
and
Samuel
Ndonga)
Business
Project
28/05/2014
35. 1. BUSINESS
STRUCTURE
OVERVIEW
2. MARKET
ANALYSIS
AND
COUNTRY
SELECTION
3.
OUR
PRODUCT
4.
BUSINESS
MODEL
COMPONENTS
5. FINANCIALS
6. SOCIAL
IMPACT
7. NEXT
STEPS
AGENDA
Business
Project
28/05/2014
36. $-‐
$50.000
$100.000
$150.000
$200.000
$250.000
$300.000
$350.000
$400.000
Y1
Y2
Y3
Y4
Y5
Y6
Y7
Y8
Y9
Y10
Hakuna
Matatu
Profits
evolu]on
Total
Net
Income
Income
from
vehicles
financed
with
Debt
Income
from
vehicles
financed
by
Drivers
$(400.000)
$(300.000)
$(200.000)
$(100.000)
$-‐
$100.000
$200.000
$300.000
$400.000
Y0
Y1
Y2
Y3
Y4
Y5
Y6
Y7
Y8
Y9
Y10
Y11
Y12
Y13
Y14
Y15
Y16
Y17
Y18
Y19
Y20
PV
of
Cashflows
NPV
NPV:
EQUITY
$
400,000
DEBT
$
900,000
WACC
20.03%
NPV
>
0
Y10
KEY
FIGURES:
PROFITABILITY
DEBT
FINANCED
VAN
$
735.10
PROFITABILITY
DRIVERS’
FINANCED
VAN
$
11,769.52
CAGR
32.17%
With
profits
CAGR
of
32%,
an
ini4al
equity
investment
of
$400K
will
be
repaid
in
full
in
10
years;
vehicles
financed
by
drivers
boost
profitability
DCF
Projec]ons
Business
Project
28/05/2014
37. 0
50
100
150
200
250
300
0
10
20
30
40
50
Y1
Y2
Y3
Y4
Y5
Y6
Y7
Y8
Y9
Y10
Fleet
evolu4on
New
vehicles
New
vehicles
(debt
financed)
New
vehicles
(drivers
financed)
Fleet
size
$(1.000.000)
$(500.000)
$-‐
$500.000
$1.000.000
$1.500.000
$2.000.000
Y0
Y1
Y2
Y3
Y4
Y5
Y6
Y7
Y8
Y9
Y10
Debt
and
Drivers’
reinvestment
Debt
repayment
New
debt
Drivers'
financing
Tot
debt
outstanding
Total
financing
(excluding
ini]al
equity)
*
HM’s
debt
is
kept
stable
at
$900k;
this
allows
the
company
to
purchase
new
vehicles
every
year,
for
an
amount
equal
to
the
debt
ceiling
level
(900K)
minus
the
amount
reimbursed
in
that
year.
The
reinvestment
of
25%
of
the
income
of
drivers
allows
us
to
grow
the
fleet
without
increasing
debt,
while
a
policy
of
constant
debt
makes
it
possible
to
increase
fleet
size
by
a
third*
every
year
Business
Project
28/05/2014
38. 1. BUSINESS
STRUCTURE
OVERVIEW
2. MARKET
ANALYSIS
AND
COUNTRY
SELECTION
3.
OUR
PRODUCT
4.
BUSINESS
MODEL
COMPONENTS
5. FINANCIALS
6. SOCIAL
IMPACT
7. NEXT
STEPS
AGENDA
Business
Project
28/05/2014
39. Musoni
permits
a
social
performance
measurement
tool,
the
‘Progress
out
of
Poverty
Index’
PPI
can
be
used
for
two
things:
1)
to
get
a
snapshot
of
the
poverty
level
of
clients
at
a
par]cular
point
in
]me,
and
2)
to
monitor
the
change
in
poverty
level
over
]me.
The
second
is
done
by
carrying
out
subsequent
surveys
auer
a
certain
point
in
]me,
and
then
seeing
how
the
client's
score
change
over
the
period.
Tugende
is
a
for-‐profit
social
enterprise
founded
in
2010
and
opera]ng
in
Kampala,
that
helps
motorcycle
taxi
drivers
own
their
own
motorcycles
to
accelerate
out
of
poverty.
But
it
is
more
than
ownership:
Tugende’s
first
25
successful
drivers
have
invested
their
new
savings
in:
Posi]ve
social
impact
• A
recent
World
Bank
study
in
Bangladesh
(spanning
3,000
households
across
20
years)
concluded
that
microfinance
increases:
-‐ personal
expenditure
-‐ household
assets
-‐ labour
supply
-‐ children’s
educa4on.
• Successful
repayment
of
the
loan
makes
minibus
taxi
owners
and
their
families
bankable
and
creditworthy.
As
a
consequence,
it
provides
them
with
easier
access
to
capital.
Posi]ve
social
impact
also
opens
opportuni]es
for
grant
funding!
“When
Medie
paid
off
the
loan,
he
bought
land
for
his
mother
and
built
her
a
house
in
a
village
an
hour
from
Kampala.”
(Michael
Wilkerson,
Tugende)
SOCIAL
IMPACT:
The
business
model,
besides
providing
drivers
with
a
stable
job,
also
leads
to
social
and
financial
inclusion
and
new
opportuni]es
for
their
families
and
community
Case
study
3:
Business
Project
28/05/2014
40. 1. BUSINESS
STRUCTURE
OVERVIEW
2. MARKET
ANALYSIS
AND
COUNTRY
SELECTION
3.
OUR
PRODUCT
4.
BUSINESS
MODEL
COMPONENTS
5. FINANCIALS
6. SOCIAL
IMPACT
7. NEXT
STEPS
AGENDA
Business
Project
28/05/2014
41. NEEDS
POTENTIAL
PARTNERS
Funds/Capital
Adver4sement
Mini-‐vans
Mobile
repayment
Drivers
educa4on
and
community
development
PARTNERSHIPS:
A
successful
implementa]on
of
the
business
model
requires
the
establishment
of
a
variety
of
value-‐adding
partnerships
to
leverage
their
specific
knowledge
and
networks
Business
Project
28/05/2014
42. j
à
Transport
(urban
&
intercity)
à
Agriculture:
Supply
of
fer]liza]on
and
pasteuriza]on
machines
à
Waste
management:
Based
on
capacity
of
truck
and
demand
à
Tex4le:
Sewing
machines
if
produced
on
demand
for
MNO
COMPATIBLE
NEW
BUSINESSES
-‐ Constant
and
predictable
cash
flows
-‐ Control
over
the
asset
provided
-‐ Training
to
entrepreneurial
empowerment
-‐ Selec]on
of
clients
based
on
network
trust
-‐ Co-‐crea4on
of
the
service
-‐ Leverage
local
knowledge
and
networks
POTENTIAL
FOR
FUTURE
EXPANSION:
There
is
great
poten]al
for
the
implementa]on
of
our
service
in
other
sectors
in
order
to
have
future
prospects
of
growth
and
extend
our
posi]ve
impact
on
society
BUSINESS
MODEL
SUCCESS
FACTORS
Business
Project
28/05/2014
A
dollar
in
charity
has
only
one
life;
a
social
business
dollar
can
be
invested
over
and
over
again.
(Muhammad
Yunus)
43. Mini-‐bus
perspec4ve:
-‐ True
commitment
of
drivers
both
in
terms
of
repayment,
as
well
as
mutuality
lending
-‐
Berer
understand
the
drivers
and
passengers
opinion
about
our
assump]ons
and
ideas
(e.g.
higher
fares,
radio
adver]sement,
safety
and
comfort
importance
etc.)
-‐ Drivers
willingness
to
comply
with
stricter
rules
but
make
them
understand
the
benefit
-‐ Understand
the
real
interest
of
partners
(Musoni,
Flashcast,
etc.)
Project
structure
perspec4ve:
-‐ Define
the
country
that
will
be
used
for
the
pilot
project
-‐ Iden4fy
key
strategic
issues
and
validate
them
(both
quan]ta]vely
and
qualita]vely)
-‐ Consolidate
the
business
model
in
order
to
make
it
investor
ready
-‐ Iden]fy
the
best
financing
structure
for
the
start-‐up
(banks,
PE
etc.)
-‐ Present
the
business
model
and
plan
to
poten]al
key
partners/clients
and
hopefully
investors
(pitching
to
Musoni,
FlashCast,
funds)
to
get
a
sense
of
the
applicability
and
the
costs,
problems
and
true
advantages
-‐ (Possibly
start
with
the
real
implementa4on)
3
MONTHS
3
MONTHS
2
YEARS
3rd
YEAR
NEXT
STEPS:
From
idea]on
to
valida]on
phase
in
the
next
3
months
in
order
to
strengthen
our
assump]ons
taking
a
fact-‐based
approach
Business
Project
28/05/2014
44. Business
Project
28/05/2014
“If
you
go
out
into
the
real
world,
you
cannot
miss
seeing
that
the
poor
are
poor
not
because
they
are
untrained
or
illiterate
but
because
they
cannot
retain
the
returns
of
their
labor.
They
have
no
control
over
capital,
and
it
is
the
ability
to
control
capital
that
gives
people
the
power
to
rise
out
of
poverty.”
(Muhammad
Yunus,
Banker
to
the
Poor:
Micro-‐Lending
and
the
Baple
Against
World
Poverty)