Driver2Home is a mobile app service that allows customers to have a driver take them and their car home safely after a night out. The service addresses issues like drunk driving by offering an alternative. The business model involves customers booking a driver through the app, who then picks them up and drives them and their car to their destination. Key aspects of the model include partnerships with insurance and car sharing companies, marketing the service as premium and social, and generating revenue from fixed pickup fees and variable rates based on time and distance. Competition exists from taxis and ridesharing, but Driver2Home offers a unique value in transporting a customer's personal vehicle.
2. Index
❏ Context
❏ Workflow
❏ Client’s profile
❏ Drivers profile
❏ Marketing strategy
❏ Business model
❏ Competition
❏ Driver2Home service main features
❏ Taxonomy
❏ Costs and revenues
❏ SWOT
3. 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.
Offering a solution for...
● Take your car everywhere without worrying
about the way back home
● Independence from public transportation
and the availability of taxi or car sharing
services
● A new alternative to get back home
● Avoid civil / legal problems
● Inability to drive
● Safety & CSR
4. A. Attraction - Client downloads the app and enters his/her credit card information
B. Book - Client needs to get home with his/her car Opens D2H app
Pushes a button to ask for a driver goes to his/her car to wait
C. Pick up - The closer driver receives the request arrives to the
location of the car meets the client and presents himself
Workflow
5. E. Dropping - Delivering
people client
arrives to final
destination
D. Driving - The service starts
The client delivers the
keys to the driver the
timer in the app is started
G. Repeat - Driver takes a Car2Go service or his scooter to get back Arrives to its starting point
nightclub or bar Waits for a new client
F. End - The driver gives back the
keys The timer is stopped
Invoicing is automatically
generated to the client’s credit card
“FREE”
6. Client’s profile
180k people between 18-30
years old go out on weekend
nights in Milan
90% of car owners would be
willing to let someone they trust,
to drive their car to get back
home safe
In Italy there are 37 million cars;
1 car for every 1.65 per person
Lombardia is the region with most cars in the country with 5.8
million; 1.60 cars per every person
70k cars are driven in the night
on weekends
18 – 35 years old
Medium to high income
Students and young
workers
Lives around Milan
7. Driver’s profile
The client rates the driver the company keeps a quality
control.
Profile required from the company:
Some Criteria are mandatory: - Age between 25 and 30
- Clean criminal record
- Minimum of 15 driver
licence points
- Contract
Profile of the driver: - Non-working students
- Young employees as a weekend
second job.
Earnings:
- Fixed amount: 50 euros per night
- Variable amount: 5€ per pick-up
9. Business model
Key partnerships
• Zurich
insurance
• Partnership
with Car2go
Key activities
• Drivers credibility
• Recruitment process
• Relations with bars
and nightclubs
Value propositions
• Use his/her own
car with a
private driver.
• Comfortability
and freedom
• To avoid theft
crimes.
Customer
relationships
• High sensitivity
• Focus on the
driver relation
with the
customer
Customer segments
• 18 30 years old.
• Medium class society
• Male and female
• From whole Milan
Key resources
• Client’s car
• Non electric scooter
• App
Channels
• Mobile
Channel
Cost structure
• Fixed costs: Drivers, App maintenance, employees.
• Variable costs: Drivers, insurance, Bank transaction.
Revenue streams
• Direct sales
• Fixed amount for every pick up.
• Variable amount: Time and Distance.
10. Competition - In Milan
In Milan, there is no direct competition, but there are different alternatives to move around.
A price comparison 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 are:
Availability, although critical, not considered. Taxis have prefered conditions of use. Some
competition but also a lot of complementarity.
*tariffs can vary depending on time, traffic, weather and so on
Taxi Uber pop UberBlack Driver2Home
€11 €7.3 €17 €16
11. Competition - Outside Milan
US company: 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)
How does it work: Submit a reservation Driver Confirmation Go anywhere with Unlimited
Stops
Arrive Safely Home with your Car
What does it cost:
12. Competition - Outside Milan
ScooterMan(UK) provides a personal chauffeur to drive you and
your personal car home.
Present in 7 cities In England and offering franchising possibility.
Available by booking in advance at least 24h before.
Now extending it’s range of chauffeur Hire Services by offering a tailor–made service to suit
individual customer needs, whether it’s business, pleasure or both.
Can be hired on an hourly (20 pounds per hour for minimum 5 hours) or a daily basis (150
pounds for 8 hours).
13. Driver2Home service main features
1) INTANGIBILITY: completely intangible because the goal of the service is to transport
clients from point A to point B using the client’s car
2) HETEROGENEITY: personalized since every client has a different departure point and
arrival, meeting their specific needs.
3) INSEPARABILITY: produced and consumed simultaneously since the client starts paying
from the moment they ask for the service and until reaching home
4) PERISHABILITY: if there are no clients, there are no revenues and a fixed standard cost.
14. ● Distributive and Personal services clusters’ combination
● Final consumption service: using the client’s car for transport but having a personal driver
● Incremental but also Recombinative innovation
● To study innovativeness, best fit is with the measurement approach defined as Service
Oriented (Innovation is analyzed by focusing on serivices’ specificities: technology at
core. An Ad hoc innovation - original solution for a strategic problem in cooperation with
users. Physical goods (cars in our case) as a source of new service:
Own a Physical Good Rent use of a Physical
Good
Perform Work Oneself
Hire Someone to do Work
15. Taxonomy of market-creating service
innovations
Separable
Inseparable
Type of service
Type of benefitCore Delivery
COMFORTABLE GAINS
Combination of many
services
Nobody else in the market
offers the consumer to
move their car
16. Costs and revenues
Monthly growth in
number of drivers
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
Application development € 30,000
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
Insurance cost per pickup € 2.5 € 2.5
Bank transaction fees € 0.3 € 0.3
Fix service rate € 5 € 5
Variable service rate € 0.69 € 0.69
Expected costs &
revenues
18. SWOT Analysis
S W
O T
Strengths
• Innovation (First one in the
market)
• Partnership with car2go
• The service becomes
ESSENTIAL (Laws)
• Social responsibility
19. SWOT Analysis
S W
O T
Weaknesses
• Hiring process of drivers and
performance
• Driver’s management vs company’s
Growth
• Cost structure
• No car2go near to his position
• Rate the drivers based on customer
feedback
20. SWOT Analysis
S W
O T
Opportunities
• The potential demand of the
service in other big cities.
(scalability).
• The diffusion of smartphones
could increase the customer
segments.
21. SWOT Analysis
S W
O T
Threats
• New competitors
• A decrease in number of cars
from 2007
• Public transportation hours
extended
• Financial Crisis
• To break the partnership with
car2go