Customer Segments

Discuss about the O Bike Business Model The Canvas Samples.

The business model is used by companies as a powerful visualization tool that clarifies all of the business components and the relationships that exist among them. Canvas is considered the most complex analytical tool that has the flexibility to be applied in different industries. This model excludes the company objectives and competitive environment. The blocks of the main business activities are the main components of the business model (Stefan & Richard, 2014).

This report discusses the business model canvas of O Bike Company, the newly established Singaporean company that provides an innovative internet-based and environmentally friendly transportation service. Also, the relationships that exist among its building blocks, the critical success factors the business has to get right to achieve sustainable success, the company policies to avoid risk and finally, the changes to be made to the business model if this was my own business.

O Bike is a global internet company, it is the first station-less smart bike-sharing company and it has been founded in Singapore in 2017. The company depends on technology and innovation to introduce a new way of transportation in Singapore and change the culture of the society through providing a conventional travel via bicycles available all over the country. This innovative transportation service provides an environmentally friendly riding service, especially in the urban and crowded areas (O Bike, 2017 b). O Bike has started its business in 2017, the company is currently serving communities in more than 60 cities in 17 countries. Its global operating network is growing every month as it encourages new countries to become a global partner (O Bike, 2018 c). O Bike also operates in Australia as the first homegrown smart bike sharing services company that utilizes technology (O Bike, 2018 a).

As a bicycle-sharing platform, O Bike offers a convenient alternative means of transportation available on-demand. This service assists in the reduction of traffic congestion and CO2 emissions, creating by this an environmentally friendly service and a better place to live in.

The company mission is to provide an efficient service via a sustainable means of transport for the public in different world countries. Its main aim is to save energy and reduce CO2 emission globally (O Bike, 2018 b).

O Bike the global internet transportation service company

Customer Segments	Relationships	Value Propositions	Key Activities	Key Partners
· Offering healthy lifestyle and cycling · Service delivery to customers in 60 cities and 17 countries.	· Customers · Global partners	· Building global network · Innovation · Energy savings and reduction of CO2 emission globally	· Operations · Marketing · Logistics management . · Franchising	·   O Bike global business partners
Channels	Key Resources
· Website · Mobile app · Sponsorship of riding events · Social media	· Franchise contracts · Staff
Revenue Streams	Cost Structure
·   Revenues of bike rental pricing (Fixed rate, flexi-rate)	·   Marketing for local and global communities ·   Advertising ·   Staff ·   Taxes and franchising

The O Bike innovative policy of service delivery depends on its Mobile application, the customers can rent or return a bike via the application. At the of the ride, the bike could be parked in the public bike area and locked by using the application (O Bike, 2018 b).

Relationships

Through its global partner network, O Bike has activated its Credit Scoring system and encourage the customers to use its services.  This strategy could increase the company revenues, as the customers with positive riding behavior can gain additional credits that could be redeemed in the future. Customers with less than 60 O Bike credits are required to pay more fees to use the service.  The cost structure of the company reflects the expenses of its marketing activities for local and global communities, advertising of its services, staff, taxes and franchising. Through its value proposition, O Bike could fill the gap of the transportation system and provide environmentally friendly transportation service in its growing network of countries by utilizing its key activities (O Bike, 2017 c).

By using its communication channels, the company promotes its services to build a strong cycling community that adapts to the climate change with low carbon emission means of transportation. According to customer segmentation, O Bike targets people in urban cities and encourages them to change their transportation behavior. Collaboration and feedback enabled the company to operate in different countries and to adapt to different cultural norms to serve the community in the best way (O Bike, 2018 c). The company key resources enable it to operate efficiently in the local market and expand its network globally. The company has planned to expand its operations and maintain its relationships in 80 cities by the end of 2017 (O Bike, 2017 d).

The critical success factors the business has to get right to achieve sustainable success, are discussed as follows:

• Technology utilization: O Bike rapid growth and global expansion are trustworthy due to its technological orientation that depends on mobile technology and the internet to provide its services to people in cities worldwide. Also, it offers global software support services to the mobile applications and ensures regular updates, for example, bugs elimination, providing a better user experience, and enhancing operational efficiency      (O Bike, 2018 c).
• Orientation to global operations: The company offers many facilities to its global partners, including, franchise model, revenue-share either flex-rate or fixed rate, operational expertise through providing the best models of operation, data analytics services to manage and enhance the business performance and predict with the market trends, technical support to the mobile app, differentiated bicycles to match customer needs, modern and healthy lifestyle of cycling and to be part of the global vision of improving future mobility and transportation (O Bike, 2018 c). It is planned to expand in Europe as part of its regional expansion plan (O Bike, 2017 e).
• Innovation: The company has developed the Geofencing technology in Singapore, this technology requires the bicycles to be parked in the designated parking areas. It is considered as a virtual boundary that alerts the bicycles entry and exit from the designated areas. The park locations are indicated in the mobile application (O Bike, 2017 a). Also, the mobile application is supported by the intelligent coordinate system, open data (OD)-route and heat maps. Big data analysis includes data about the original location, destination and the routes to determine the efficiency of the service. Also, hardware innovation support is introduced through offering a variety of bicycles that has been differentiated to meet the requirements and customer expectations (O Bike, 2018 c).

Fifth: The company policies to avoid risk

In order to avoid potential risk and ensure the safety of the customers, the company encourages them to wear helmets while riding O Bike and asks them to look after their own safety.  There are safety cycling programs offered to interested people to ensure their own safety and the safety of the bicycle as well (O Bike, 2018 b). The traffic congestion needs an informed planning to solve the transport problems in normal cases and emergencies as well. O Bike is considered as the first bike-sharing service provider to introduce a contingency plan with tested response to the natural hazards for example typhoons. In case of emergency, the company keeps the bicycles in warehouses and its trained team is capable of providing support for people in need. The preparation of an emergency plan increases the credibility of the company and lessens the impact of disasters (O Bike, 2017 b).

Value Propositions

O Bike as the first station-less smart bike-sharing company has created a good business model. The model has to include some factors to sustain the company success and enables it to make further expansions. The company has to build R&D unit and attract the most talented staff to study the market trends and people lifestyles in different countries. According to Artz et al., (2010), R&D plays a direct role in building the organizational internal knowledge required for product innovation and enables it to evaluate the potential outcomes of the organizational knowledge.

Customer segmentation might include special groups, as women, school and university students with special focus on each group to encourage them to use the service. The non-governmental organizations might be considered as partners, especially those that encourage the green environmental movements and environmental protection from the CO2 emissions. The green innovation takes a special attention from various entities. The green innovation of hardware and software that is related to a green products or services and technologies involved in pollution prevention and energy saving (Schiederig et al., 2012).

Literature of stakeholder theory, suggests that the organization has to deal with multiple stakeholders to run its business effectively and sustain its long-term survival in the marketplace (Lauesen, 2016). Accordingly, O Bike has to expand its network and to have more stakeholders.

Conclusions

O Bike company depends on technology and innovation to introduce a new way of transportation in Singapore and change the culture of the society through providing a conventional travel via bicycles available all over the country. Its global operating network is growing every month as it encourages new countries to become a global partner. This service assists in the reduction of traffic congestion and CO2 emissions, creating by this an environmentally friendly service and a better place to live in. Through its global partner network, O Bike has activated its Credit Scoring system and encourage the customers to use its services.

The company offers many facilities to its global partners, including, franchise model, revenue-share either flex-rate or fixed rate, operational expertise through providing the best models of operation and data analytics services to manage and enhance the business performance and predict with the market trends. The company has developed the Geofencing technology in Singapore, this technology requires the bicycles to be parked in the designated parking areas. It is considered as a virtual boundary that alerts the bicycles entry and exit from the designated areas.

References

Artz, K., Norman, P., Hatfield, D., & Cardinal, L. (2010). A longitudinal study of the impact of R&D, patents, and product innovation on firm performance. Product Development & management Association, 27, 725–740.

O Bike. (2017 a, October 27). O Bike launches Singapore’s first Islandwide geofencing feature. Retrieved from O Bike: https://www.o.bike/sg/media/obike-launches-singapore-s-first-islandwide-geofencing-feature/

O Bike. (2017 b, September 28). O Bike harnesses big data to support development of smart city in Taiwan. Retrieved from O Bike: https://www.o.bike/sg/media/obike-harnesses-big-data-to-support-development-of-smart-city-in-taiwan/

O Bike. (2017 c, October 3). O Bike gets even more cost-friendly with lower rates, deposits. Retrieved from O Bike: https://www.o.bike/sg/media/obike-gets-even-more-costfriendly-with-lower-rates-deposits/

O Bike. (2017 d, September 14). O Bike debuts in Hong Kong, expands footprint in Asia. Retrieved from O Bike: https://www.o.bike/sg/media/obike-debults-in-hongkong-expands-footprint-in-asia/

O Bike. (2017 e, November). oBike to roll out its dock-less bike sharing model in 10 more European countries. Retrieved from O Bike: https://www.o.bike/uk/media/o-bike-to-roll-out-its-dock-less-bike-sharing-model-in-10-more-european/

O Bike. (2018 a, March 26). About Us. Retrieved from O Bike: https://www.o.bike/au/about/

O Bike. (2018 b, March 26). FAQ. Retrieved from O Bike: https://www.o.bike/au/faqs/

O Bike. (2018 c, March 26). oBike’s Global Business Partner Program. Retrieved from O Bike: https://image.o.bike/h5/GBPP+Introduction+Letter+.pdf

Rector, A., Sandefur, B., Ceccagnoli, M., Clendenin, M., & Hallenborg, L. (2016). Introduction to Legal Means for Protecting Intellectual Property. In Technological Innovation: Generating Economic Results (pp. 87-130). UK: Emerald Group Publishing Limited.

Schiederig, T., Tietze, F., & Herstatt, C. (2012). Green innovation in technology and innovation management – an exploratory literature review. R&D management , 42(2), 180-192.

Stefan, S., & Richard, B. (2014). Analysis of business models. Journal of Competitiveness, 6(4), pp. 19-40.