This document provides an analysis of the Driver2Home service, which allows customers to contact a driver via a mobile app to pick them up and drive them and their car home safely after a night out. The summary discusses the context for the service, including new consumer transport needs, stricter drunk driving laws, and Milan's nightlife scene. It then overviews the service's business model, strategic alliances, competition, and financial projections. A SWOT analysis identifies strengths like the digital platform but also weaknesses around managing aggressive growth. Recommendations focus on ensuring high driver performance and strong relationships with partners.

1. Innovation
in
services
–
Case
analysis
Bocconi
University
F o u a d
C h e h a b
T u d o r
C a r s t o i u
C a r o l i n a
A l o n s o
R o d r í g u e z
F a l l
s e m e s t e r
2 0 1 4
ßDriver2Homeà

2. TABLE
OF
CONTENTS
EXECUTIVE
SUMMARY
3
CONTEXT
4
BUSINESS
MODEL
4
WORKFLOW
5
MARKET
CHARACTERISTICS
5
MARKETING
STRATEGY
5
STRATEGIC
ALLIANCES
6
COMPETITION
7
FINANCIAL
INFORMATION
8
INNOVATION
9
SWOT
10
MANAGERIAL
RECOMMENDATIONS
12
SOURCES
OF
INFORMATION
13

3. EXECUTIVE
SUMMARY
Over
the
last
decade
transport
systems
have
been
evolving
to
meet
the
needs
of
a
new
generation
of
consumers,
whom
have
been
looking
for
offers
that
give
them
even
more
value
than
before.
Given
this
scenario
we
focus
our
attention
on
a
service
that
could
change
the
way
people
move
around
Milano.
The
following
work
is
looking
to
analyze
this
service,
focusing
on
its
innovative
traits
and
its
main
characteristics,
reviewing
its
key
success
factors
and
the
challenges
that
could
be
faced.
We
start
with
the
context
in
which
the
service
will
be
provided,
where
5
factors
play
an
important
role:
new
consumer
transport
needs,
harder
traffic
laws,
Milano's
nightlife
characteristics,
safety
and
social
responsibility
play
a
key
role.
Following
we
analyze
their
Business
Model
with
the
Canvas
methodology,
where
we
identified
the
key
success
factors
of
the
new
service,
emphasizing
the
main
resource
of
their
digital
platform
and
their
strategic
alliances.
The
market
analysis
and
its
marketing
strategy
are
elements
that
although
important,
the
Company
has
been
less
descriptive
about,
focusing
mainly
on
social
networks
and
looking
for
alliances
with
the
most
popular
nightclubs
around
the
city.
Based
on
our
analysis,
we
identified
that
their
strategic
alliances
are
the
most
important
element
for
this
service
company.
Most
importantly
it's
drivers
and
their
performance
and
the
relationship
they
have
with
the
Car
sharing
company,
since
in
case
of
any
of
this
factors
default,
the
company
could
face
difficulties
on
its
operations.
Since
it's
a
new
service,
an
analysis
was
made
to
assess
its
innovation
traits,
focusing
on
the
distributive
and
personal
services
clusters,
the
characteristics
of
an
incremental
innovation
linked
with
a
recombinative
innovation.
Competition
although
non-­‐directly
existent
at
the
moment,
could
harm
the
business
potential
for
the
Company,
since
there
exist
already
in
the
market
some
transport
service
providers
that
show
value
for
the
consumers.
Additionally
Italy
there
are
more
mature
business
models
that
are
already
scaling
up
their
business
and
could
enter
the
market.
As
part
of
a
cost
and
revenues
analysis
and
taking
into
account
the
data
provided
by
the
Company's
management,
we
performed
a
profit
and
loss
statement
for
the
first
two
years,
which
showed
us
the
potential
income
for
the
business,
but
also
reflected
the
aggressive
growth
that
the
management
is
expecting
and
raises
the
questions
about
the
management
of
this
growth.
As
a
conclusion,
we
added
a
SWOT
analysis
emphasizing
the
internal
and
external
factors
that
could
impact
the
business
in
the
short,
medium
and
long
term.
And
additionally
we
add
recommendations
to
key
concerns
that
arise
while
developing
the
Company's
analysis.

4. CONTEXT
Driver2Home
is
a
replacement
driver
service,
where
the
customer
contacts
a
driver
through
a
mobile
application;
the
driver
will
go
to
pick
up
the
client
as
well
as
the
client’s
car
and
drive
him/her
safe
home.
Driver2Home
is
offered
to
face
the
problems
related
to
the
inability
to
drive,
like
driving
under
alcohol
consumption.
Each
year
laws
in
Milan
are
considering
harder
penalties
for
people
driving
drunk
(0.5
grams/1
litter
of
blood),
so
people
has
to
look
for
alternatives
to
get
back
home
after
a
heavy
drinking
night.
Even
though
they
took
one
or
two
drinks,
there
is
a
big
risk
to
reach
the
maximum
grams
allowed
by
law.
This
situation
limits
people
to
the
usage
of
public
transportation
that
doesn’t
run
at
late
night
and
the
taxi
services.
The
idea
of
this
service
is
for
those
who
want
to
take
their
car
everywhere
without
thinking
on
how
to
turn
back
home.
They
could
stay
all
night
long
near
to
their
car
instead
of
leaving
it
in
the
club
and
turn
back
to
home
with
taxi.
In
big
cities
pricy
cars
could
be
stolen
or
damaged
by
drunken
people.
So
this
cluster
of
people
cares
a
lot
about
their
car.
The
researches
made
by
the
company
shows
that
in
Milan,
180
000
people
between
18-­‐30
years
old
goes
out
on
weekend
nights,
and
70
000
cars
are
driven
in
those
nights.
However,
a
survey
performed
in
Milan,
showed
that
90%
of
car
owners
would
be
willing
to
let
someone
they
trust,
to
drive
their
car
to
get
back
home
safe.
BUSINESS
MODEL

5.
WORKFLOW
The
service
starts
from
the
moment
a
person
needs
to
get
home
after
a
night
out
and
it’s
not
in
a
condition
to
drive
his
car.
He/she
opens
the
app
(which
he/she
had
previously
downloaded
into
its
phone
and
where
its
credit
card
information
is
stored)
and
pushes
a
button
to
ask
for
a
Drive2Home
service.
Drivers
will
be
located
close
to
nightclubs
and
bars
in
order
to
be
available
when
a
client
needs
them,
thus
reducing
waiting
times
for
the
client.
The
client
and
the
driver
will
meet
at
the
clients’
car
location,
the
keys
will
be
delivered
to
the
driver
and
the
service
begins,
setting
the
timer
in
the
app.
The
driver
will
deliver
people
as
instructed
by
the
client
ending
the
service
when
the
client
arrives
to
its
final
destination.
Invoicing
is
automatically
charged
by
the
app
to
a
credit
card
once
the
service
is
completed.
After
the
service
is
over,
the
driver
walks,
takes
its
scooter
or
uses
a
car
sharing
company
to
get
back
to
the
starting
point
(a
nightclub
or
bar)
to
wait
for
a
new
client.
The
client
can
give
feedback
to
Driver2Home
about
the
whole
service
experience,
rating
the
driver’s
performance
and
thus,
allowing
the
company
to
control
the
quality
of
its
drivers.
MARKET
CHARACTERISTICS
In
Italy
there
are
37
million
cars,
1
car
for
every
1.65
per
person;
and
Lombardia
is
the
region
with
the
most
cars
in
the
country
with
5.8
million,
meaning
1.60
per
person.
180k
people
between
18-­‐30
years
old
go
out
on
weekend
nights
in
Milan
and
70k
cars
driven
in
the
night
on
weekends.
90%
of
car
owners
would
be
willing
to
let
someone
they
trust,
to
drive
their
car
to
get
back
home
safe
Client
profile:
● 18
–
35
years
old
● Medium
to
high
income
● Students
and
young
workers
● Lives
around
Milan
MARKETING
STRATEGY
The
service
will
be
presented
to
the
market
not
just
as
a
useful
service
but
as
a
cool
and
desirable
one
as
well.
The
service
will
be
offered
for
high-­‐end
clients
with
a
premium
price.
So
the
driver
will
be
dressed
with
a
suit
and
will
be
present
nearby
the
most
famous
clubs
and
bars.
As
a
consequence
the
company
is
aiming
to
target
these
clubs
by
offering
to
their
clients
free
pick
ups
and
10%
-­‐
20%
coupons
discount
to
encourage
people
to
try
the
service.
Coupons
will
be
offered
on
tables
where
the
majority
of
clients
have
high
incomes.
Moreover
the
service
will
be
presented
to
all
clubs
clients
who
book
for
seats
by
phone.
On
the
other
hand,
the
company
will
be
presenting
the
service
just
from
the
beginning
on
all
social
media
and
specifically
on
Facebook
in
order
to
create
the
buzz.
Moreover,
even
on
social
networks,
the
company
will
be
offering
coupons
to
the
first
movers
and
free
pick-­‐ups
to
the
current
clients
that
invite
friends
to
use
the
service.
The
expected
waiting
times
for
the
driver
to
get
to
the
destination
is
a
maximum
of
20
minutes,
with
a
target
of
10
minutes
to
arrive.

6. STRATEGIC
ALLIANCES
Zurich
Driver2home
is
in
partnership
with
Zurich
insurance
company,
which
provides
them
a
special
insurance
system.
It
is
given
for
every
car
pick-­‐up
for
a
fixed
cost
that
amounts
to
2.50
euros.
When
the
client
will
order
the
service
through
the
APP,
the
insurance
will
be
activated
automatically.
So
the
use
of
the
app
is
mandatory.
Currently,
the
most
of
normal
Italian
insurances
cover
the
third
part’s
damages
regardless
who
is
driving
the
car
that
causes
the
accident,
but
it
doesn’t
cover
the
car
that
causes
the
accident,
so
the
driver2home’s
insurance
will
cover
the
driver,
the
car’s
owner
and
the
third
part
‘s
damages
in
case
of
accident.
Personal
car
is
covered
as
well
as
the
civil
responsibility
(third
people
cars)
Car2go
Car2go
is
an
essential
source
of
driver2home
business.
It
let
the
driver2home’s
drivers
to
go
back
to
the
center
after
the
pick
up
service
with
the
car
for
free.
It
is
a
Win-­‐Win
relation
since
car2go
is
interested
in
having
the
most
of
their
cars
in
the
center,
so
the
drivers
of
driver2home
will
provide
them
this
service
indirectly.
Nightclubs
The
most
of
driver2home
clients
will
be
from
nightclubs
and
bars,
so
they
will
be
in
touch
with
the
most
known
bars
and
nightclubs
and
left
free
coupons
at
the
beginning
to
advertise
the
service
and
will
give
some
discounts
in
the
future.
Drivers
The
driver
will
not
be
chosen
because
of
his
experience
or
ability
to
drive
but
will
be
chosen
if
he
meets
some
criteria.
The
driver
should
have
an
age
between
25
and
30
years,
he
should
have
a
clean
criminal
record,
and
a
minimum
of
15
driver
license
points.
However,
most
of
the
drivers
will
be
students
or
young
employees
as
it
will
be
like
a
high
paid
weekend
second
job.
They
will
earn
a
fix
amount
of
50
euros
per
night
and
a
variable,
which
depends
on
the
number
of
pick-­‐ups
per
night.
Every
driver
will
have
his
own
rate
that
will
be
based
on
customer’s
feedback.
As
a
result,
they
will
be
fired
if
they
are
under
ranked.
Currently
they
have
already
CVs
for
potential
drivers,
but
the
rest
will
be
retrieved
by
Internet,
the
company
will
do
contracts
with
the
drivers
and
test
the
drivers.
The
driver
will
not
be
chosen
because
of
his
experience
or
ability
to
drive
but
will
be
chosen
if
he
meets
some
criteria.
The
driver
should
have
an
age
between
25
and
30
years,
he
should
have
a
clean
criminal
record,
and
a
minimum
of
15
driver
license
points.
They
will
earn
a
fix
amount
of
50
euros
per
night
and
a
variable
one,
which
depends
on
the
number
of
pick
ups
per
night.
Every
driver
will
have
his
own
rate
that
will
be
based
on
customer’s
feedback.
As
a
result,
they
will
be
fired
if
they
are
under
ranked.
At
the
beginning,
people
will
be
hired
and
chosen
by
the
owner
according
to
the
criteria
mentioned
above,
and
in
the
future,
with
the
increasing
in
drivers
number
the
company
will
hire
an
independent
company
that
will
be
in
charge
of
hiring
the
most
suitable
drivers
by
testing
their
ability
to
drive
and
their
reliability
to
give
the
client
a
good
experience.

7. COMPETITION
As
this
concept
is
quite
innovative
there
is
a
lot
of
experimenting
going
on
and
quite
few
consolidated
firms
exist.
In
Milan
there
is
no
direct
competition
so
we
did
a
benchmark
with
similar
transport
services.
Outside
Milan
we
identified
two
competitors,
one
in
the
US
(BEMYDD)
and
the
other
in
UK
(Scooter
Man).
In
Milan
Price
comparisons
on
a
standard
ride
from
Duomo
area
to
Bocconi
University
with
normal
taxi
service,
Uber
pop,
UberBlack
and
Driver2Home
was
made.
The
average
tariffs
charged
(that
can
vary
depending
on
time,
traffic,
weather
and
so
on):
● Uber
pop:
2€
+
0.2€/min
*
16min(time
given
by
Google
maps)
+
0.35€/km*6km=7.3
euro
● UberBlack:
5€
+
0.75€/min
*
16min=
17euro
● Taxi:
4.55€
+
1.06€/km*6km=
11euro
● Driver2Home:
5€+
0.69€/min*
24min=
16
euro
We
did
not
analyze
the
availability
of
the
service,
although
this
is
a
critical
element
and
might
differ
strongly
between
the
options
selected
and
also
at
different
moments
of
the
day.
It
is
worth
adding
that
only
taxis
are
allowed
to
use
the
preferred
driving
lines
and
enter
limited
driving
areas
without
additional
costs,
which
can
significantly
reduce
time
and
costs.
Although
there
is
a
competition
element
between
these
different
services
we
also
acknowledge
the
presence
of
complementary,
as
they
have
slightly
different
roles
(especially
Driver
2
home
which
does
not
move
only
the
client
but
also
the
clients
car)
and
can
enlarge
the
pool
of
potential
customers.
We
noticed
that
the
cheapest
with
a
average
cost
of
7.3€
was
Uber
Pop,
the
newly
announced
service
from
Uber
that
makes
use
of
amateur
drivers
personal
cars
to
help
them
amortize
the
car
expenditures.
With
an
average
of
11€,
traditional
taxi
is
the
next
in
line.
Driver
2
Home
should
cost
around
16€
so
it’s
significantly
more
expensive
but
it
offers
the
advantage
of
taking
ones
personal
car
also.
UberBlack
is
the
most
expensive
but
it’s
also
the
most
high-­‐end
service
as
the
cars
are
of
high
quality
and
the
drivers
are
professional.
Outside
Milan
BEMYDD
is
currently
servicing
76
cities
across
31
states.
They
stress
the
social
impact
of
their
business,
explaining
the
huge
risks
of
Driving
under
alcohol
influence
(DUI)
or
Driving
while
intoxicated
(DWI).
It
works
in
a
very
similar
way
to
Driver
2
Home
except
for
the
fact
that
the
payment
is
done
on
a
hourly
basis
(varies
from
$14
to
$19.5
per
hour).
They
also
offer
a
pickup
service($25
fixed
charge
plus
variable
cost
based
on
distance)
and
driver
teams
for
events(
ranging
from
$45
to
$53
per
team
per
hour).
ScooterMan
is
present
in
7
cities
in
England
and
offers
franchising
possibilities.
A
main
difference
is
that
the
booking
can
be
done
only
in
advance
(at
least
24
hours
before).
It
can
be
hired
on
an
hourly
(20
pounds
per
hour
for
minimum
5
hours)
or
a
daily
basis
(150
pounds
for
8
hours).

8. FINANCIAL
INFORMATION
Their
cost
structure
is
based
on
minutes
of
usage
of
the
service,
since
it
has
a
high
degree
of
customization,
allowing
the
company
to
personalize
the
price
regardless
of
the
location
of
the
client,
in
order
to
build
a
profitable
business.
Currently
the
company
is
working
with
forecasts
estimating
a
cycle
time
for
the
services
of
55
minutes
per
pickup
(including
the
time
it
takes
the
driver
to
get
to
the
client’s
location
plus
a
20
minutes
service
and
the
time
it
will
take
to
get
back
to
its
starting
point
after
finishing
the
service),
thus
on
average
they’ll
do
6
pick
ups
per
night.
The
average
income
per
pickup
could
be
18.8
euros
(5+0.69
€/min).
Year
1
Year
2
Application
development
€
30,000
Average
number
of
drivers
per
year
70
224
Nights
a
year
156
156
Fix
drivers
salary
per
pickup
€
50
€
-­‐
Variable
drivers
salary
per
night
€
5
€
5
Estimated
pickups
per
night
per
driver
5
6
Average
trip
in
minutes
20
20
Fix
service
rate
€
5
€
5
Variable
service
rate
€
0.69
€
0.69
Insurance
cost
per
pickup
€
2.5
€
2.5
Bank
transaction
fees
€
0.3
€
0.3
Driver2Home
shows
profitability
on
the
first
year,
based
on
an
exponential
growth
in
drivers,
hoping
to
have
an
aggressive
increase
on
demand.
On
the
other
hand,
the
company
is
estimating
to
pay
50€
per
driver
in
the
first
year,
assuming
a
high
fix
cost
as
a
start
up;
for
the
second
year
they
are
estimating
to
remove
that
cost,
which
could
impact
the
driver’s
performance,
since
they
would
be
affected
by
a
lack
a
fix
salary.
One
of
the
key
challenges
for
the
start
up
will
be
related
to
managing
the
exponential
growth
expected,
since
they
forecast
an
average
growth
in
the
number
of
drivers
from
25%
to
60%
for
the
first
months
of
operation.
Currently
three
entrepreneurs
manage
the
company,
which
would
be
in
charge
of
recruitment,
operations,
finance
and
marketing
of
the
company
for
the
first
year
and
evaluating
aggressive
growth
for
the
company.
Month
1
2
3
4
5
6
7
8
9
10
11
12
Number
of
drivers
8
17
27
38
49
61
73
87
100
114
128
143
Monthly
Growth
113%
59%
41%
29%
24%
20%
19%
15%
14%
12%
12%
Year
1
Year
2
Income
Fix
rate
€
273,000
€
1,048,320
Variable
rate
€
753,480
€
2,893,363
€
1,026,480
€
3,941,683
Fix
costs
Driver's
salary
for
availability
€
546,000
€
-­‐
Variable
costs
Driver's
salary
€
273,000
€
1,048,320
Insurance
€
136,500
€
524,160
Bank
transaction
fees
€
16,380
€
62,899
€
971,880
€
1,635,379
Gross
income
€
54,600
€
2,306,304
Taxes
31%
31%
Net
income
€
37,674
€
1,591,350
3.7%
40.4%

9. INNOVATION
Currently
the
market
only
offers
mobility
services
for
people,
restricting
them
to
the
convenience
of
using
their
own
car.
Driver2Home
is
a
service
experience
that
allows
moving
people
and
their
cars
along
to
have
a
maximum
mobility
in
Milan.
The
main
features
are:
1) Intangibility
-­‐
The
service
that
Driver2Home
provides
is
completely
intangible
because
the
goal
of
the
service
is
to
transport
clients
from
point
A
to
point
B
using
the
existing
means
of
transport.
Using
the
client’s
car
to
get
them
home
and
returning
with
a
car
sharing
service
provider,
so
you
manipulate
tangible
products
to
offer
an
intangible
service.
2) Heterogeneity
-­‐
The
services
provided
are
personalized
since
every
client
has
a
different
departure
point
and
arrival,
meeting
their
specific
needs.
3) Inseparability
–
Driver2Home
services
are
produced
and
consumed
simultaneously
since
the
client
starts
paying
from
the
moment
they
ask
for
the
service
and
until
they
get
home.
4) Perishability
–
Since
the
service
is
produced
and
consumed
at
the
same
time,
if
there
are
not
clients,
the
company
will
have
only
a
fix
standard
cost.
Driver2Home
is
company
developing
in
the
distributive
and
personal
services
clusters,
since
is
a
private
transport
service
moving
people
from
one
point
to
another.
It
is
a
final
consumption
service
since
the
consumer
is
using
this
service
to
reach
its
destination,
so
there
are
not
intermediaries
between
the
company
and
the
final
consumer.
It
is
also
a
personal
service
because
is
based
on
a
B2C
business
model,
since
the
service
provided
is
delivered
from
the
app,
which
will
give
the
driver
the
order
to
pick
up
the
client
in
a
meeting
point.
The
business
model
of
Driver2Home
is
based
on
the
use
of
physical
goods
where
the
service
is
provided
with
the
client’s
car
delivering
the
transport
mean
but
at
the
same
time
hiring
someone
to
do
the
work
to
take
you
home.
There
are
present
also
elements
of
ad
hoc
innovation
since
users’
and
drivers’
participation
to
the
innovation
process
is
very
important.
Since
the
innovation
is
based
on
building
on
already
existing
markets
(the
car
sharing
and
personal
car
markets)
we
can
confirm
that
it
is
an
incremental
innovation.
Furthermore,
because
it
recombines
existing
services
and
markets
changing
the
architecture,
Driver
2
Home
is
also
a
recombinative
innovation.
Thinking
now
about
the
taxonomy
of
market
-­‐creating
service
innovations,
we
notice
that
Driver
2
Home
is
an
inseparable
type
of
service
(a
user
cannot
selectively
choose
just
one
or
some
parts
of
the
service)
and
the
type
of
benefit
is
at
core
(its
a
new
service
altogether,
not
just
a
new
way
of
offering
an
existing
service).
This
fact
furthermore
highlights
that
innovation
is
highly
present
in
this
new
business
concept

10. SWOT
The
Company
is
the
first
mover
in
the
market.
They
partnered
with
a
strong
car
sharing
company,
which
allow
the
driver2home’s
drivers
to
go
back
to
the
center
after
the
pick
up
service
with
the
car
for
free.
It
is
a
Win-­‐Win
relation
since
car2go
is
interested
in
having
the
most
of
their
cars
in
the
center,
so
the
drivers
of
driver2home
will
provide
them
this
service
indirectly.
On
the
other
hand,
the
new
laws
regarding
alcohol
restrictions
and
driver
licenses
let
the
service
to
become
essential
since
the
Italian
government
decreases
the
blood
alcohol
concentration
to
0.5
grams/1
litter
of
blood,
so
people
has
to
look
for
alternatives
to
get
back
home
even
after
a
light
drunk
night.
Moreover,
this
business
shows
many
weaknesses:
the
hiring
process
is
standardized
since
the
driver
will
not
be
chosen
because
of
his
experience
or
ability
to
drive
but
will
be
chosen
if
he
meets
some
criteria.
The
driver
should
have
an
age
between
25
and
30
years,
he
should
have
a
clean
criminal
record,
and
a
minimum
of
15
driver
license
points.
As
a
result,
that
will
affect
the
business
since
the
credibility
of
drivers
is
critical.
Furthermore,
an
App
rating
could
not
solve
this
problem
since
the
average
of
drunk
customers
will
be
high
and
they
will
not
be
able
to
leave
a
review.
The
business
plan
made
by
the
owner
shows
an
aggressive
growth
in
driver’s
number.
They
will
start
with
eight
drivers
in
the
first
month
and
will
end
with
143
drivers
by
the
twelfth
month
so
it
is
an
increase
by
1788%.
The
question
here
is
how
they
will
handle
the
recruitment
process?
On
the
other
hand,
the
business
could
be
more
complex
than
expected,
for
the
drivers
and
for
the
company
as
well.
If
the
drivers
can’t
find
cars
sharing
available
in
some
areas,
they
can’t
come
back
to
the
previous
area
and
make
more
pick
ups.
That
fact
could
affect
the
profitability
of
the
company
since
the
driver
is
paid
a
fixed
amount
of
money
in
order
to
make
many
pick
ups
per
night
and
will
affect
the
driver
earning
since
the
driver
is
paid
a
variable
cost
for
every
pick
up.

11. The
business
presents
growth
opportunities
in
other
Italian
cities
if
it
will
be
replicated
in
a
good
way
taking
into
consideration
the
growth
of
the
services
that
are
related
to
this
business
like
car
sharing.
On
the
other
hand,
many
threats
could
affect
the
driver2home
service.
According
to
the
ministry
of
transport,
from
2007,
Italy
has
seen
a
constant
and
continuous
decrease
in
number
of
purchased
cars
that
is
caused
by
the
bad
situation
of
the
sector
and
the
bad
situation
of
the
Italian
economy
in
general.
Moreover,
the
minister
of
transport
highlighted
the
impact
of
new
services
on
the
car
sector.
The
risk
to
have
new
competitors
in
the
future
is
really
high
since
the
entrance
barriers
and
the
costs
to
build
up
the
business
are
low.
So
we
may
see
in
the
future
many
competitors
in
this
small
segment
that
are
fighting
for
market
share.
So
the
competition
in
the
future
will
be
based
on
the
knowledge
of
the
market
and
the
CRM.
Although,
if
the
public
transport
hours
will
be
extended
in
the
future,
the
business
service
will
not
be
relevant
anymore
as
the
customers
will
prefer
to
take
the
metro
or
the
bus
and
pay
less
money.
Moreover,
a
huge
threat
that
will
end
this
business
will
be
the
breaking
of
partnership
with
car2go
as
this
partnership
is
the
source
of
the
business.

12. MANAGERIAL
RECOMMENDATIONS
We
have
found
many
critical
issues
in
the
driver’s
management
process:
• The
company
is
aiming
to
hire
an
independent
company
after
one
year,
and
according
to
the
report
given
to
us
by
the
company,
the
owners
are
looking
to
have
143
drivers
by
the
12th
month.
We
were
wondering
if
the
owners
would
be
able
to
manage
to
hire
and
evaluate
by
themselves
this
quantity
of
drivers.
• On
the
other
hand,
the
number
of
driver
points
requested
is
not
as
high
which
cannot
be
enough
to
have
a
good
quality
of
drivers.
We
recommend
increasing
the
number
of
points
to
the
maximum
as
the
drivers
will
be
considered
the
face
of
the
company
and
the
company
will
not
be
able
to
afford
lack
of
quality
at
the
beginning
of
the
operations.
• Additionally
we
recommend
reviewing
the
Management
plan
to
pay
a
fix
amount
of
50€
to
its
drivers
per
night
in
the
first
year
of
operations,
since
in
the
scenario
that
the
driver
is
able
to
maximize
all
its
rounds
per
night
by
the
first
year,
he
will
have
a
50€
“surplus”
in
its
income
that
will
not
have
by
the
second
year.
This
will
generate
noise
in
the
overall
working
environment
of
the
drivers,
risking
the
Company
to
high
a
high
turnover
ratio
and
corner
the
management
to
spend
time
and
money
into
making
regular
recruitment
sessions.
Regarding
the
alliances
with
a
car
sharing
company:
• We
recommend
the
Company’s
management
to
look
for
a
formal
(written)
long
term
commitment
from
the
car
sharing
company
for
guaranteeing
that
the
cars
that
drivers
are
going
to
use
will
be
available
for
several
years,
since
this
is
a
key
success
factor
for
the
company,
since
this
way
they
are
avoiding
driver’s
transportation
costs
that
will
affect
the
Company’s
breakeven
point.
Have
a
track
of
the
potential
market
and
scalability:
• It
is
important
to
notice
the
trend
in
the
purchase
of
cars
for
the
long-­‐term
operations
of
the
business,
since
as
shown
earlier,
in
Italy
fewer
cars
are
being
bought
and
is
important
to
evaluate
if
this
trend
is
affecting
the
Company’s
target
market.
• Is
important
to
note
that
the
in
case
the
company
is
looking
to
scale
their
business,
they
will
have
to
do
rely
on
replicating
in
Milan’s
market
characteristics.
First
mover
advantage:
• The
company
has
to
leverage
the
Market
potential
of
the
business
opportunity
before
more
mature
companies
detect
the
opportunity
and
try
to
profit
from
it
taking
into
account
its
current
knowledge
on
the
business
in
other
locations.
• To
have
a
strong
marketing
strategy
should
also
be
a
priority,
which
hasn’t
been
taken
into
account
really
seriously.
One
of
the
success
factors
for
being
the
first
mover
and
remain
profiting
from
it
is
to
make
sure
a
great
number
of
people
knows
the
service.

13. SOURCES
OF
INFORMATION
Milan
Laws:
Arts.
53
&
52.
Law
130,2010
http://www.costotaxi.com/?q=it/content/it/taxi-­‐calcolo-­‐della-­‐tariffa-­‐milano
https://www.uber.com/cities/milan
http://www.driver2home.com/tariffe
Interview
with
Driver2Home
top
Management
Innovation
in
services
course
slides’