🚌 Cityflo | Acquisition | GX14

Can you relate to this?

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Vs

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😭 Are you tired of the daily commute stress and hassle?

Say goodbye to crowded public transport and expensive cab rides with Cityflo - the eco-friendly and convenient bus service for the Indian commuter. Enjoy a comfortable ride with air conditioning and spacious seating, so you can make the most of your journey. Whether you want to catch up on your favorite Bollywood songs, learn a new language, or just take a much-needed nap, Cityflo has got you covered.

With over 12,000 professionals like you already on board, join the Cityflo community today and experience a stress-free commute. Say hello to a more relaxed and productive daily routine with Cityflo.

🧠 Let’s Understand

<aside> 🎁 The Product : Understanding the product allows for a more tailored and effective growth strategy, ensuring that efforts are focused on the right areas for maximum impact.

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Deep-dive:

1. What does the product solve for?Cityflo is a B2C app-based daily commute service that provides stress-free office rides in premium buses currently operating in Mumbai, Thane & Hyderabad.
2. Which stage this product?✅ PFM achieved & Series A Funded($15.5M) 💰!https://media.giphy.com/media/bgD6vHcOuNVimkxRiR/giphy.gif
3. The Green-Pitch!Cityflo’s customers will collectively reduce over 60,000 tonnes of carbon emissions, take 9,000 cars off the roads daily, and help reduce travel time on Delhi highways by 10 per cent across the board. In the process, Cityflo will create 1000+ jobs across our drivers, maintenance staff and managerial roles in the system.
4. Product FeaturesHere are some of Cityflo's core unique features:!https://media.giphy.com/media/M9Ni2BP4aGsXFMyZuP/giphy.gifOverall, Cityflo provides a reliable and comfortable daily commute solution that simplifies the daily commute experience for users.
5. 1. Comfortable and air-conditioned buses: Cityflo provides comfortable and air-conditioned buses for daily commutes, ensuring a comfortable ride for users.
   2. App-based booking: Booking system is entirely app-based, making it easy for users to book their rides from the comfort of their homes or offices.
   3. Real-time tracking: The app provides real-time tracking of the buses, enabling users to track their bus's location and estimated time of arrival.
   4. Reserved seating: It provides reserved seating to its users, ensuring that they have a comfortable and hassle-free ride.
   5. Contactless payment: Cityflo offers contactless payment options, including payment through the app, making the payment process quick and easy.
6. Typical User FlowHere is flow:!https://media.giphy.com/media/3oriNXDcxTxTitssrm/giphy.gif
7. 1. User opens the Cityflo app on their mobile device.
   2. User selects their current location and destination.
   3. Cityflo suggests available buses and the estimated time of arrival for each bus.
   4. User selects a bus and books a seat.
   5. User receives a booking confirmation along with the details of the bus and the seat number.
   6. User boards the bus at the designated pick-up point.
   7. User enjoys the comfortable ride and reaches their destination on time.
   8. User gets off the bus and completes the ride.
   9. User rates the ride and provides feedback, if any.
   10. User pays for the ride through the Cityflo app or in cash to the driver, if applicable.
   11. User can view their ride history and earn rewards points for every ride taken with Cityflo.
   12. User can refer friends and family to earn additional rewards points.

<aside> 🧑‍🤝‍🧑 The Users : The success of any growth strategy depends on understanding the needs, wants, and behaviours of the target audience.

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Deep-dive:

1. 🎤 User Interviews!https://media.giphy.com/media/9r75mOqODOPI8kMz0F/giphy.gif😏 TinaMeet Tina, a young professional who works in Mumbai. Tina has been using Cityflo for her daily commute, but she has been facing issues with the service lately. She finds that the rides are often delayed. She is now looking for a better bus service in the city to travel to and from her office.😏 RaviMeet Ravi, a middle-aged man who commutes to his office every day. Ravi has been using Cityflo for his daily commute, but he has been experiencing issues with the service. The buses are often crowded, and the air-conditioning is not always working correctly. As a result, Ravi is now looking for a better bus service in the city to travel to and from his office.🤯 SomaMeet Soma, a college student living in Mumbai who relies on public transportation to commute to and from her classes. Soma has heard about Cityflo from her friends and decided to give it a try. However, she found the app confusing to use and had trouble booking a seat on the bus. Soma also experienced delays and cancellations, causing her to miss important lectures and meetings with her study group. Frustrated with the service, Soma is now searching for a more user-friendly and reliable bus service to meet her transportation needs.🙄 MayaMeet Maya, a working mother who travels to and from her office every day. Maya has been using Cityflo for her daily commute, but she has been facing issues with the service. The buses are not always punctual, and recently they have raised the prices significantly. As a result, Maya is now looking for a better bus service in the city to travel to and from her office.
2. 1. 😇 Happy Users!https://media.giphy.com/media/3NtY188QaxDdC/giphy.gif👱🏼‍♂️ RohitMeet Rohit, a software engineer who lives in Mumbai. Rohit has been facing a lot of issues during his daily commute to the office, especially during the rainy season when the traffic is unpredictable and the trains are always crowded. He has to wake up early in the morning to beat the traffic and reach the office on time.One day, while scrolling through his social media feed, Rohit came across Cityflo, a transportation app that promised a comfortable and hassle-free commute. Intrigued, he decided to give it a try.On a rainy Monday morning, Rohit booked a ride on Cityflo to his office. As he waited for the ride, he was a little skeptical about how the driver would navigate the traffic and the rain. However, to his surprise, the driver arrived on time, equipped with a clean and air-conditioned vehicle, that too on time.During the ride, Rohit was impressed with the driver's knowledge of the city and his ability to navigate the traffic, even during the rain. He was able to relax and enjoy the ride, knowing that he would reach his destination on time.The real-time tracking feature also helped Rohit plan his day better, as he could see exactly when he would arrive at the office. The driver was friendly and courteous, making the journey comfortable and enjoyable.Since that day, Rohit has been using Cityflo every day for his daily commute, especially during the rainy season. The service has made his daily commute a stress-free experience, and he has recommended it to all his colleagues and friends who are looking for a reliable transportation option during the rains.🤰🏼PriyaMeet Priya, a pregnant woman who lives in Mumbai. Priya is in her third trimester and has been finding it difficult to commute to her office, especially during the rainy season. She has to wake up early in the morning to avoid the crowded trains and buses, and the long commute is taking a toll on her health.One day, Priya's colleague suggested that she try Cityflo, a transportation app that promises a comfortable and hassle-free commute. Intrigued, Priya decided to give it a try.On a rainy Monday morning, Priya booked a ride on Cityflo to her office. As she waited for the ride, she was a little apprehensive about how the driver would navigate the traffic and the rain.During the ride, Priya was able to relax and enjoy the journey, knowing that she was in safe hands. The driver was considerate and drove carefully, ensuring that Priya's comfort and safety were top priorities.Since that day, Priya has been using Cityflo every day for her daily commute. The service has made her daily commute a stress-free experience, which is particularly important for her as a pregnant woman. She has recommended Cityflo to all her friends who are expecting and are looking for a safe and reliable transportation option.👨🏼‍💼RajeshMeet Rajesh, a 45-year-old man who loves to travel and explore new places. Rajesh is an experienced driver and has always preferred to travel by his own car. However, with the increasing traffic and congestion on the roads, he has been finding it difficult to drive around the city. One day, a friend suggested that he try Cityflo, a transportation app that promises a comfortable and hassle-free commute.Curious, Rajesh decided to give it a try. He downloaded the app and booked his first ride on Cityflo. As he waited for the ride, he was a little apprehensive about how comfortable the ride would be compared to his own car. However, to his surprise, the driver arrived on time, equipped with a clean and air-conditioned vehicle.During the ride, Rajesh was impressed with the quality of the service. The driver was professional and courteous, and the ride was smooth and comfortable.Since that day, Rajesh has been using Cityflo every time he needs to travel within the city. He loves the convenience and comfort of the service, and it has made his travel within the city stress-free. He has even recommended Cityflo to his friends who are also facing issues with traffic and congestion in the city.🤵🏼‍♂️AnkitMeet Ankit, a young professional who works for a multinational company. Ankit is often required to work on late-night calls with his international colleagues due to work commitments. As a result, he finds it challenging to get enough rest and feel refreshed for the next day's work.One day, Ankit decided to try Cityflo, a transportation app that promises a comfortable and hassle-free commute. Ankit knew that he needed a comfortable ride to work in the morning after working on late-night calls. So, he booked a ride on Cityflo for his daily commute.The next day, Ankit got into the car and was impressed by how clean and air-conditioned it was. As the driver started the car, Ankit realized how comfortable the ride was. He was able to take a relaxing nap, which he could never do when he drove to work himself.Since that day, Ankit has been using Cityflo every day for his daily commute. The service has made his daily commute a stress-free experience, especially after working late-night calls.Cityflo has become a crucial part of Ankit's daily routine, and he recommends it to anyone who needs a comfortable and hassle-free ride in the city.
   2. 😒 Not that happy user
3. 📝 Story Mapping

   User	Need	Pain Point	Solution
   👱🏼‍♂️ Rohit	Efficient transportation during rainy weather	Traffic congestion and difficulty driving	Cityflo's reliable and efficient transportation during rainy weather
   🤰🏼 Priya	Safe and convenient transportation for pregnant women	Difficulty standing or finding a seat on crowded buses	Cityflo's reserved seating and priority for pregnant women
   👨🏼‍💼Rajesh	Comfortable transportation for frequent car traveler	Traffic congestion and uncomfortable car rides	Cityflo's comfortable and efficient transportation as an alternative to driving
   🤵🏼‍♂️Ankit	Convenient and comfortable transportation for daytime naps	Late night work commitments and sleep deprivation	Cityflo's comfortable seating and convenient scheduling
   😏 Tina	Better transportation service	Delay rides & Cost	Finding a better bus service in the city
   😟 Ravi	Better transportation service	Crowded and uncomfortable buses with faulty air conditioning(faced few times)	Finding a better bus service in the city
   🤯 Soma	User-friendly and reliable transportation for college students	Confusing app and delays/cancellations	Searching for a more user-friendly and reliable bus service
   🙄 Maya	Better transportation service	not always punctual & Cost	Finding a better bus service in the city

4. 👥 Locking ICPs

<aside> 🌏 The Market : Different markets have different needs, preferences, and behaviours. By understanding the market, companies can tailor their growth strategies to better resonate with their target audience and increase the chances of success.

</aside>

Deep-dive:

1. Market Size(India) 🇮🇳!https://media.giphy.com/media/zJ5udfK9zBcyJDD7xz/giphy.gifThe survey — conducted among 650 respondents in 20 cities including metros as well as Tier-1, Tier-2, and Tier-3 cities — found that most people travel simply from home to office and that the use of fleet cabs has reduced the usage of personal vehicles substantially, particularly in big cities.

   Category	Percentage
   Home to Office	31%
   Family purposes	44%
   Weekend multi-route travel	9%
   Outstation travel	9%
   Other purposes	7%

   Market Size	Total Addressable Market (TAM)	Serviceable Available Market (SAM)	Serviceable Obtainable Market (SOM)
   Daily office commuters in top Indian cities*	2.5 Crore	75 Lakhs	15 Lakh
   Percentage of app-based bus services	1%	1%	1%
   TAM for app-based bus services	250,000	75,000	15,000
   Percentage for Cityflo	10%	10%	10%
   Daily office commuters for Cityflo	25,000	7,500	1,500
   Estimated average revenue per day per user**	₹200	₹200	₹200
   Estimated daily revenue for Cityflo	₹50,00,000	₹15,00,000	₹3,00,000
   Estimated Monthly revenue for Cityflo	₹15,00,00,000	₹4,50,00,000	₹90,00,000
   Estimated Yearly revenue for Cityflo	₹180,00,00,000	₹54,00,00,000	₹10,80,00,000
   Estimated Profit %	20%	20%	20%
   Estimated Yearly Gross Profit	₹36,00,00,000	₹10,80,00,000	₹2,16,00,000

   Assuming a total of 2.5 Crore daily office commuters in the top Indian cities (such as Mumbai, Delhi, Bangalore, Hyderabad, Chennai, etc.), who can potentially use Cityflo's services. Also, assuming an average one-way travel cost of ₹200 per user.

   The report also states that the increasing adoption of digital technology and the growing demand for public transportation in urban areas are key factors driving the growth of the bus market in India.Therefore, there is a significant potential market for urban transportation solutions like Cityflo in India, given the size of the overall urban mobility market and the growing demand for public transportation.
2. Competitors 🤺!https://media.giphy.com/media/32mC2kXYWCsg0/giphy.gifSome of the competitors of Cityflo in the Indian market include:These companies offer similar services like Cityflo, which include app-based shuttle bus services for daily commuters in major cities of India.
3. 1. Chalo Bus
   2. Shuttl bus
   3. Ola & Uber Pool
   4. Drivezy
   5. Milo Rides
   6. State AC bus
4. Major challenges in the coming years ? 🤼‍♂️

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Major challenges in the coming years include:

1. Increasing competition: As the demand for convenient and affordable urban transportation services continues to rise, more and more companies are likely to enter the market and compete with Cityflo.
2. Regulatory changes: Any changes in government regulations related to urban transportation, such as licensing and safety requirements, could impact Cityflo's operations and profitability.
3. Rising costs: As Cityflo expands its services and reaches more customers, it may face increasing costs related to infrastructure, maintenance, and marketing.
4. Technology disruptions: With the rapid pace of technological change, Cityflo may face challenges in keeping up with new innovations and integrating them into its operations.
5. Shifts in consumer preferences: Changes in consumer preferences, such as a shift towards shared electric vehicles, could impact the demand for Cityflo's services.
6. How to stay ahead? 🏃🏼

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To stay ahead of competitors, Cityflo can consider the following strategies:

1. Focus on customer experience: Cityflo can continue to invest in providing a superior user experience through its app and service. By gathering feedback from its customers and constantly improving its service, Cityflo can build a loyal customer base that prefers its service over competitors.
2. Expand to new routes and cities: Cityflo can continue to expand its services to new routes and cities, allowing it to capture a larger share of the market. By offering convenient and affordable transportation options to a wider audience, Cityflo can stay ahead of competitors.
3. Integrate with other services: Cityflo can look for opportunities to integrate with other services to offer a more complete transportation solution to its customers. For example, it can partner with ride-hailing services or car rental companies to provide first and last-mile connectivity.
4. Offer loyalty programs and promotions: Cityflo can incentivize customers to use its service more frequently by offering loyalty programs, discounts, and promotions. By rewarding loyal customers, Cityflo can encourage repeat usage and build a stronger relationship with its customer base.
5. Embrace new technology: Cityflo can embrace new technologies like electric or autonomous vehicles to differentiate itself from competitors and offer a more sustainable and efficient transportation solution. By staying ahead of the curve in terms of technology, Cityflo can appeal to tech-savvy customers who are looking for innovative transportation solutions.
6. Ways to generate more revenue? 💰

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Few ideas for Cityflo to increase revenues and profit margins without increasing ride costs:

1. Product integrations: Cityflo can easily initiate Product integrations with other products, with the goal of enhancing its functionality, value, or user acquisition. Read more..
2. Running referral programs: Cityflo may offer a discount or cashback to the referrer and the person being referred when they sign up and use the service. This helps Cityflo to acquire new customers and retain existing ones by leveraging the power of word-of-mouth marketing. Read more..
3. Loyalty program: Cityflo can introduce a loyalty program that rewards frequent riders with discounts, free rides, or other perks. This can help increase rider retention and encourage more frequent usage.
4. Premium service: Cityflo can introduce a premium service with additional features such as comfortable seating, priority boarding, and refreshments. This can provide an additional revenue stream and also cater to riders who are willing to pay more for added comfort and convenience.
5. Partnership with hotels: Cityflo can partner with hotels to offer shuttle services to and from the hotel. This can provide an additional revenue stream and also help increase awareness of Cityflo among tourists.
6. Delivery service: Cityflo can start a delivery service for small packages and documents. This can provide an additional revenue stream and also help increase the utilization of the existing fleet during off-peak hours.
7. Micro-mobility: Cityflo can introduce micro-mobility options such as electric scooters or bicycles for short trips. This can provide an additional revenue stream and also help reduce congestion in the city.
8. Electric vehicles: Cityflo can gradually transition to an all-electric fleet, which can help reduce operating costs and also appeal to riders who are environmentally conscious.

📣 Which Channels to choose?

<aside> 🚥 The Channels : It is important to understand the product distribution channels before applying growth frameworks to ensure that the product reaches its target audience efficiently and effectively. Without this understanding, the growth strategies may not be successful in driving sustainable growth for the product.

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1. Comparison of channels!https://media.giphy.com/media/gEvab1ilmJjA82FaSV/giphy.gif

   Channel vs Parameters	Google search keywords	External Referrals	Paid Ads	Product Integrations	Content Loops
   Flexibility	High	Medium	Medium	Low	Low
   Effort	Medium	Medium	High	High	High
   Speed	High	Low	High	Medium	Medium
   Scale	High	Medium	High	High	High
   CAC	Medium	Low	High	Low	Medium

CAC : LTV ratio ? When doing External Referrals Assumption: 1 Current customer sent referrals to 10 of it’s colleagues in last 90Days and only 1 got converted

Rule: For every successful referral

• Referred person will get ₹400 → cityflo wallet
• Referrer will get **** ₹300 → Cityflo wallet
• Rest of the ₹500 will be for Development, OPs & Sales

SOM = 15,000

Consider Cityflo targeting on 10% of them = 1,500

Formula CAC: Customer acquisition cost/get

Calculate CAC: (₹19,50,000) / ( 1,500) = ₹1,300

Formula LTV: AOV x %margin x frequency x retention

Calculate LTV: (₹200 x 20%) x (Daily 1 time) x (90Days) = ₹3,960

LTV should be 3x of your CAC

LTV/CAC : 3960/1300 = 3.04

Note: LTV:CAC is going to be much lower in the case of Paid Ads, keywords

AOV → average order value LTV → Life time value of a customer CAC → Customer acquisition cost Frequency → How many times in a day/week/month the user will need the product.

Considering the above scenarios it sounds logical to proceed ahead with Referral Program and Product Integrations

1. Referral Implementation

   Question	Answer
   Define the brag-worthy thing for your product?	* Getting extra nap time

   It starts by completing a few rides and, on average, providing a 3.5 rating.We will ask for a rating for your last ride.After the rating has been successfully given, we will prompt the user to refer friends and family.Here, the customer will gain a detailed understanding of the referral program and be able to start referring new users via WhatsApp.Customers can check the status of previously referred users. If necessary, they can also send reminders to those users.If a referred user signs up, books a ride, or subscribes, the referrer will receive a cashback in their Cityflo wallet that they can use for their next ride.!https://media.giphy.com/media/fV7hS7OL57rcgux45i/giphy.gifTo add gamification to the application, we introduced the "Green-Ambassador Leaderboard".This allows the customers to compete with each other in order to save the planet. This way customers will become more hooked to the platform, they will check the app even when they are not booking or riding.This will also create a sense of responsibility and awareness among people.Customers will have a positive perception of this initiative as it shows a commitment to saving the planet and contributing towards society.!https://media.giphy.com/media/jTSOClK7HBoMaVn5Hi/giphy.gifRadha had been a loyal Cityflo customer for over a month. She loved the convenience and comfort that the bus service provided, and she couldn't wait to share it with her colleagues.When she saw her colleague Ruhani struggling with her daily commute, Radha knew she had to do something to help. She gifted Ruhani a free ride on Cityflo, knowing that the comfortable seating, air conditioning, and on-time arrival would make a big difference.Ruhani was amazed by the gift and quickly booked a ride on Cityflo. The experience was so comfortable and hassle-free that she became a regular customer. Radha was happy to have helped Ruhani, but she also felt good about reducing traffic and carbon emissions by promoting a greener commute option.
2. • Decision Matrix
3. • Utilising that extra time for reading, watching, listening, reading or finishing work
   • Reducing carbon emissions
   • Reducing additional traffic
   • Mental peace | | Platform currency? | * Comfort
   • Referral points | | Who and when do you ask for a referral? | Users who have taken a minimum of 4 rides and have given an average rating of 3.5/5 or above | | How will the user discover the referral program? | * Users who meet the criteria will see the referral option unlocked after rating their ride.
   • A nudge will be sent via WhatsApp to start referring and earn points | | How will referees share the referral code/link? | Referral code/link can be shared via WhatsApp, Instagram, and Facebook | | What will the invite look like to a non-user? | Video with an eco-friendly context, benefits of joining, and stats about other users | | How do you increase the average referrals per customer? | By adding a time factor:
   • link is active only for 48 hours
   • if you join within 48 hours, you get 4+1 ride |
4. • PlanAccording to the decision matrix, we have come up with a solution:Gift a Ride program. The Referrer will share a referral via WhatsApp, emphasising the benefits of:Receiving a gift from a friend or family member can create a sense of obligation in the Referred person, encouraging them to try the service.
   • • Helping the environment
     • Decreasing carbon emissions
     • Reducing traffic
     • And receiving comfortable free rides in return.
   • Referral journey
5. • Green-Ambassador leaderboard
6. • 😇 Happy User Story

1. Integration Implementation

• Comparison

Considering our unique offering, we have shortlisted a few applications that Cityflo can possibly integrate with to better serve our customers and onboard new users quickly without spending much.

Based on the above comparison martix → Google Maps and Keka are shortlisted to initiate product integrations with Cityflo.

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• Google Maps : Integration flow

Integrating with Google Maps can benefit both Android and iOS platforms. An intelligent integration with Google Maps can create a win-win situation for both platforms.

Currently, there is no end-to-end integration with shuttle bus services. However, integrating maps with Cityflo bus services can help attract new users and retain current customers.

New users:

1. Search for a location
2. If Cityflo is available on the route, the map will recommend available buses
3. User selects a bus and creates an account
4. Seat selection will be available after the account is created

Current customers:

1. Search for a location
2. If Cityflo is available on the route, the map will recommend available buses
3. User selects a bus and can directly select a seat

• Keka HRMS : Integration flow

Integrating the Keka HRMS mobile app can be very beneficial, especially when integrated with Cityflo. This creates a win-win situation for both platforms. Keka can pitch it as a benefit program for all their business clients and their respective employees.

Ride subscriptions can easily be done via the Keka portal and payments can be made by customers. Once done, they will be able to raise claims for travel allowance if their organization allows for it.

Currently, there is no end-to-end integration with Cityflo bus services. However, integrating Keka with Cityflo bus services can help attract new users and retain current customers. Also, customers will get the ride at the discounted rates.

For new users:

• At the end or beginning of the day, a prompt will appear to book a ride.
• Confirm the location, and the option will be available to mark it as the default location.
• If Cityflo is available on the route, the map will recommend available buses.
• The user selects a bus and creates an account.
• Seat selection will be available after the account is created.

For current customers:

• Search for a location.
• Home and office addresses will already be mapped.
• If Cityflo is available on the route, the map will recommend available buses.
• The user selects a bus and can directly choose a seat.

🙏🏼 Thank you ! 😊