BluSmart Assignment

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Quick walkthrough of the assignment

Problem Statement:

BluSmart has carved a niche as a clean, smart, hygienic, and reliable option committed to environmental sustainability. However, two key challenges hinder its growth:

1. Supply-Demand Gap: Limited vehicle availability, particularly during peak hours, frustrates users and negatively impacts their experience. While expanding the fleet offers a solution, it does not provide cost-effectiveness and sustainability.
2. Reliability/Availability: Despite its unique value proposition, because of scarcity of cabs it is becoming unreliable and impacting the recall value compared to established giants like Uber and Ola. (Ola/Uber holds a dominant 75% market share.
   

BluSmart needs innovative strategies to address these challenges without compromising its commitment to sustainability.

The BluSmart Proposition🚙

For a category that needs no introduction, BluSmart stands apart, not by numbers but by experience, an experience that transcends and makes you feel at home!

🥇 Stress-Free Cab Rides - Pre-book the ride so you can plan your life better and have a smooth ride experience without worrying about cancellations, surge pricing, and haggling with drivers.

💚 Green Ride Experience - All cabs are electric and owned by the company, which allows BluSmart to control the cleanliness and upkeep of vehicles, manage charging cycles, and thus enhance the asset's life cycle. The Zero cabin noise makes you feel at home. 😊

👨🏻‍🔧 The Driver-Driver-partners are on payroll and are selected basis of significant driving experience and are well-trained in driving, etiquette, and customer service.

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• Core Values
• • 100% Electric Fleet
  • No Cancellations
  • No Surge Pricing
  • Premium Experience
  • Professional Drivers
  • Punctuality
  • Sanitized, Hygienic Rides
  • Sub-Products
  • • Scheduled Cab Service
    • Daily City Rentals
    • Recurring Rides

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• Anchor Insights
  
  💡Users are tired of Ola & Uber world and are in search of a predictable, reliable alternative
  💡50% of BluSmart Riders are women who value safety and hygiene
  💡Current Fleet Size is now approx. 5000 where more than 70% cabs are deployed in National capital region (NCR)
  💡BluSmart’s 40% users are Iphone users, it shows that they prefer premium experience
  💡BluSmart is currently solving for Top of the funnel users where convenience > Money

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💡BluSmart is the App of choice when it comes to Airport rides

💡Daily office commuters are BluSmart loyalists in Delhi

💡Not many people know that BluSmart is serviceable in their locations

💡Loyal riders feel that there should be a more engaging proposition for them in the form of rewards

💡Most users use BluSmart on recommendation from Friends & Family

Prioritization of Office Commuter ICPs with large TAM, high frequency, and appetite to pay. High distribution potential and high adoption curve will make it easier.

Also based on market analysis and company’s own data, the prioritization of office commuter is validated

(Source: https://evreporter.com/blusmart-operations/)

ICP Goals

​Appendix 1. Research on User Personas

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• What is working for BluSmart?
• 🗣 Word of mouth: Due to premium experience, clean cabs and well mannered drivers. Users feel very cared for
• 🛬 PMF: Customers experience BluSmart at the Airport, are impressed with it and try to use it more in their home location through other features like rental, city rides etc, and vice versa
• ❤️ CAC is low due to acquisition mainly being a combination of referral and organic

• What is not working for BluSmart? - Key Challenges
• • Customers are dissatisfied due to unavailability of cabs in peak hours, specifically in Bangalore due to less fleets
  • Due to unavailability of cabs, the reliability on Blusmart is going down, and recall value is taking a big hit
  • Limited serviceable area
  • Reason for Limited serviceable area and less fleet size are operational challenges, as Blusmart want sustainable growth and according to their current business model, the entire fleet electric cars being leased.
  • These vehicles are sourced from entities such as EESL (Government of India Enterprise) and high-net-worth individuals.
  • The diverse fleet offered by BluSmart includes electric car models like the Mahindra e-Verito, Tata e-Tigor, Tata Xpres-T EV, Hyundai Kona Electric, and MG ZS Electric.
  • While BluSmart is eyeing for more fleets, Tata Motors have also signed deal with Uber for 25000 EV Car (Source)
  • Also Because of funding winter, though BluSmart proved the business model, it is still struggling to raise another round
  • The raw materials used for EV manufacturing also a bottleneck for car manufactures
  • The EV industry in India faces a substantial challenge concerning the availability of essential components and raw materials becoming a bottleneck in scaling (Source: BusinessOutlook)

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• Market data on peak hours
  Peak Hours on Weekdays are 9-11 AM and 5-8 PM
  

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(Source: TomtTom.com)

Managing Supply-Demand specifically in peek Hours

Solutions present are in order of priority. The prioritization metrics used here impact ,reach and effort

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• Networking Ride(Use Blusmart, get Smart)“Searching for a co-founder, take the networking ride at BluSmart”
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Problem Identified and Proposed Solution

• Now given the market/user research data, we have understood the demography of our user segment.We Identified:(Below graph represent the percentile based on gov report comparing to other cities)
• • Our users prefers premium experience
  • Appetite to Pay is High- Medium among our users (so pitching cost effective pooling won’t work)
  • The user persona who interact most are Office Commuters
  • Now as we are focusing on Bangalore, one thing that our user persona is craving for is Networking.

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(Below graph represent the percentile based on gov report comparing to other cities)

​BluSmart will introduce a "Smart Networking Ride" service with the following features:

• We will analyze the heat maps of traffic areas in peak hours, define the locations, get data from our own journey patterns, google maps
• User profile to update their designation, may be Linkedin (Not mandatory)
• Option to book a Networking ride
• Transparent communication around estimated ETA, Price, and Wait time at each location

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• Peak hour incentives: Networking ride where they can pool up with professionals (upto 2), (don’t want to hamper the premium experience, more like a backseat conversation), network, share insights while stuck in traffic during peak hours
• No Rush Hour Pricing
• Also in next phase try to map the journey based on route optimization, preference of users
• Dynamic rewards: Rewards will be multiplied based on the number of people booking a networking ride together (e.g., 2x for 2 people)
• Data-driven matching: Utilizing data from MyGate, Co-working spaces, checkin apps like MiQube (Used at ZFH). BluSmart will suggest potential networking partners with similar origin and destination points
• To prioritize user privacy, user can decide the information they want to share such as designation, name, company name, etc,…

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• Implementation Steps

1. Marketing campaign to educate customer about the new Networking rides
2. Value generated in terms of building new connection, getting more insights etc,.
3. Robust carpooling algorithm: Efficiently matching networkers based on location, destination, designation and timing preferences
4. Fixed timelines: Predictable wait time at every stop and clear communications to all passengers. Easy trackable option, nudges on frequent intervals, assigned spots for smooth journey
5. Integration with data sources: Partnerships with MyGate, attendance apps at corporate houses and co-working spaces will provide relevant user data for networking ride suggestions
6. Rewarding system: A transparent and attractive reward system that incentivizes carpooling, considering budget constraints
7. Launch and marketing: Promoting the BluSmart Networking ride service through targeted campaigns highlighting its benefits for users and the environment, specially in peak hours. Will design a pilot plan as user satisfaction is our top priority
8. Continuously monitoring and adapt: Tracking key metrics like carpool adoption rate, user satisfaction, and operational efficiency, and make adjustments as needed
9. Traffic management: Collaborations with traffic authorities/google maps to provide real-time traffic insights, to optimize driver routes and minimize wait times

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Validating Hypothesis of Pooling Feature

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• Launch Plan
• 1. Pilot location will be one of the peak areas where slots are always sold out
  2. For the pilot launch, networking ride passengers will be limited to 2
  3. Reserve 2-3 slot for networking ride only
  4. Target user of the particular location
  5. Incentivize user for feedback and improve on the drawbacks
  6. Guideline to networker on how to interact, respect privacy, potential discussion topics etc,..
  7. Built a feedback loop where rider will take a networking ride and share insights about the experience
• Potential Business Challenges/Trade-Offs
• • User Experience: As Blusmart is known for luxurious travel and upmost experience, maintaining user experience could be a challenge in case of bad connections
  • Revenue Loss/no Improvement in Revenue: Potential revenue loss in case of only 1 passenger in networking ride. (The problem can be solved by getting user opt in for Networking ride in advance and closing the slots in time)
  • Longer travel times: Sharing rides often involves detours to accommodate other passengers, potentially increasing travel time for some users compared to solo rides
  • Operational complexity: Managing networking bookings, efficient matching,  cancellations, detours, and potential conflicts between riders can add operational complexity
• Safety concerns: Addressing user concerns about safety and security in shared rides is crucial
  
  Metrics to track
• ⭐️Adoption of Networking feature
• ⭐️User Satisfaction - NPS
• ⭐️No. of networking ride with more than 1 passenger

⭐️Bounce rate/Drop out percentage

⭐️Revenue generated

Optimizing vehicle deployment

Proposed Solution

• • Using traffic mapping products like google maps, TomTom.com to leverage advanced analytics and data sources
  • • Predict demand: Analyze historical data, traffic patterns, weather conditions, and real-time events to forecast demand for rides in different areas throughout the day
    • Demand Clustering based on data received from various platforms
    • Smart vehicle positioning: Based on predicted demand, strategically repositioning vehicles to high-demand zones before surges occur. This ensures faster response times, reduces customer wait times, and increases ride fulfillment.
    • Charging station integration: Integrate data from charging stations to factor in charging availability and optimize vehicle routes to minimize downtime for charging
    • Setup additional charging infrastructure in Prime areas with high bookings
    • Deploy new Fleets in the high demand area

Limiting serviceability to top hubs in Bengaluru

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Implementation Steps

• 1. Data acquisition: Partner with TomTom, Google Maps and other relevant data providers to access real-time and historical mobility data
  2. Predictive analytics platform: Develop a robust analytics platform capable of processing large datasets and generating accurate demand forecasts
  3. Geofencing and Surge Zones: Implementing geofencing to create surge zones in specific areas during peak hours. By concentrating demand in designated zones, efficiently allocate resources without affecting the entire service area.
  4. Integration with charging infrastructure: Integrate data from charging stations to factor in charging availability and optimize vehicle routes. Position Charging infrastructure in peak areas to fulfill demand of shorter distance rides
  5. Monitoring and refinement: Continuously monitor the system's performance, analyze user feedback, and refine the algorithms for improved accuracy and effectiveness

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Potential Business Challenges/Trade-Offs

• • Data accuracy and reliability: The effectiveness of the optimization system hinges on the accuracy and real-time availability of data, including traffic conditions, demand forecasts, and vehicle locations. Inaccurate or delayed data can lead to suboptimal vehicle positioning and inefficiencies.
  • Privacy concerns: Collecting and utilizing user data for vehicle deployment raises privacy concerns. We needs to ensure transparency and user consent regarding data collection and usage, while adhering to data privacy regulations.
  • Technology infrastructure: Implementing and maintaining a robust technology infrastructure to support real-time data processing, communication, and route optimization requires significant investment and ongoing maintenance.
  • Driver acceptance: Drivers might be apprehensive about changes that impact their routes, schedules. Effective communication, training, and potentially incentive programs can address their concerns
  • Increase in operation cost for setting up infra cost
  • Taking conscious business decision to limit serviceable region and not accommodation rides from non- peak areas
    
    Metrics to track
    
    ⭐️ Vehicle utilization rate
    ⭐️ Fulfillment rate of ride requests
    ⭐️ Number of rides served per vehicle per hour
    ⭐️ Reduction in idle time
    ⭐️Peak hour service level

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• Scaling Fleet Size BluSmart raises $24 million; aims to scale its fleet size to around 8,000 EVs by 2024Scaling Fleet is already in process for BluSmartSource: https://www.cnbctv18.com/auto/blusmart-raises-24-million-dollar-aims-to-scale-its-fleet-size-to-around-8000-evs-by-2024-18622841.htm
  
• Smart Investing in BluSmart
• • Proposed Solution
  • • BluSmart will provide a platform for investor to buy a electric car and lease it to the BluSmart
    • BluSmart will pay for the EMI’s generated from Ride services
    • User can remove their car from the platform after the contract is finished and can pay rest of the EMI by themselves
    • Car will be owned by Investor themselves
    • Investors can earn monthly amount from this investment

• Running Incentive program to onboard more driver partners
• Lets solve for engagement/retention aka Recall Value
• Goal: Increase user engagement and ride frequency through social proof generated by a CO2 tracker and points system.
  
• 1. Networking rides to improve recall and build Community Social Proof with CO2 Tracker and Redeemable points
  2. • Implementation
     • Pop-up prompts
     • • Peak hours:
       • • Highlighting the positive environmental impact of choosing service over private cars, emphasizing CO2 reduction and points earned ("Reduce traffic congestion and earn points! Choose BluSmart during peak hours and make a greener commute").
         • Networking options in car-pooling
           

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• Non-peak hours:
• • Emphasizing the benefits of using the service anytime, including CO2 savings, points accumulation, and avoiding peak hour crowds.
  • Offer bonus points
• CO2 tracker:
• • Integrating a visible and engaging CO2 tracker within the app.
  • Allowing users to compare their individual impact with the collective impact of all users.
  • Badges and milestones for achieving CO2 reduction goals.

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• Points system:
• • Points for every ride, with bonus points for:
  • • Rides during non - peak hours (encourage non peak demand management)
    • Timely show up in respective slots
    • Choosing eco-friendly options like carpooling (promote sustainability) - To be discussed in detail for managing supply in peak hours
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• Offer attractive rewards for redeemed points, such as:
• • Discounts on future rides
  • Special slot available in peak hours
  • Ride credits
  • Charitable donations (such as we plant a tree on your behalf)
  • Exclusive vouchers

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• Expected Impact
  
  (i) Increased frequency of rides
  (ii) Enhanced user engagement
  (iii) Improved brand image
  (iv) Positive word-of-mouth
  
  Metrics to Track
  Number of rides per user in peak and non peak hours
  Points earned and redeemed
  App engagement metrics
  Social media mentions and brand sentiment
  Increase in User retention
  Current Retention % → 40%, Expected Increase to %→ 45%
  Revenue Impact
  Increase User Frequency

2. Integrating with MyGate, MiQube(attendance/checkin apps used by ZFH office as well), and Co-working Spaces apps for Office Commuters
3. • Integration Strategy
   • • Direct cab booking: Enable seamless cab booking directly within MyGate, MiQube, and coworking space apps
     • Attendance data access (with user consent): Obtaining anonymized attendance data from MyGate, MiQube, co-working apps to:
     • • Predict peak commute times: Anticipate demand surges and pre-position vehicles in high-traffic areas to reduce wait times.
       • Identify coworkers: Identify co-workers and send car pool notifications (Ashish is also traveling to IndiQube - Richmond road, share the ride and save environment and your pocket)
       • Send personalized notifications: Trigger timely reminders to book rides before peak hours or offer special deals during off-peak times.
       • Targeted marketing: Based on user location and office timings, send personalized promotions and offers relevant to their commute needs.
     • Coworking space integration: Partner with coworking spaces to offer exclusive ride-hailing benefits to their members, such as discounts or priority booking
   • Implementation Considerations
   • • Data security and privacy
     • API integration
     • User education
     • Performance monitoring
   • Expected Impact
   • (i) Increased bookings from certain locations
   (ii) Optimized resource allocation(iii) Targeted marketing reach
   • Metrics to Track
   • ⭐Number of rides from third party app
   • ⭐Number of app downloads/installs
   • ⭐Frequency of app opens within integrated platforms
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4. Calendar Integration
5. • Features
   • • Two-way synchronization: Seamlessly sync upcoming calendar events with the BluSmart app.
     • Automatic ride suggestions: Based on event locations and timings, suggest optimal ride options (considering traffic, distance, etc.) with estimated fares and travel times.
     • One-click booking: Book rides directly from calendar events with minimal clicks, streamlining the booking process.
     • Reminders and notifications: Receive timely reminders to book rides for upcoming events, ensuring you never miss an appointment.
     • Calendar platform integrations: Integrate with popular calendar platforms like Google Calendar, Outlook, and Apple Calendar for wider accessibility.
     • Customization options: Allow users to personalize settings, such as preferred car types, notification preferences, and advance booking timeframes.

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1. • Implementation Considerations
   • • Secure data handling
     • User consent and control
       
   • Expected Impact
     (i) Enhanced user experience
     (ii) Valuable user data
     (iii) Reduced booking friction
     
     Metrics to Track
     Frequency of calendar event synchronization
     Number of rides booked directly from calendar events
     Click-through rate on ride suggestions
     
     4. Subscription/Recurring Ride/ Blue pass
   • Features
   • Recurring Revenue and User LoyaltyIntroduce subscription-based models for frequent users. Subscribers could benefit from discounted rates or priority service during peak hours, encouraging customer loyalty while helping to manage demand
     

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Appendix

Ideal customer profiles (ICPs)

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Users based on their frequency

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