CC BY
57УДК 303
Janne Hurme1, Student, Ignat Kulkov ,
PhD student
MOBILITY AS A SERVICE: BUSINESS MODEL ANALYSIS OF THE
KYYTI COMPANY
1 Lappeenranta University of Technology, Finland, Janne.Hurme@student.lut.fi
2 °
Abo Akademi University, Finland, Ignat.kulkov@abo.fi
Abstract. The article describes Mobility as a Service as a new way of providing transport services. An analysis of the company's business model based on design method and design themes is chosen as a research method and later compared with the Business Model Canvas. As a result of the study, the key parameters were identified that differ the focal company from another types of transportation. Moreover, the influence of the new technology on the business ecosystem was analyzed.
Keywords: Mobility as a Service, business model, business ecosystem
1. Introduction
Kyyti is a young new company (founded in 2016 and based in Helsinki, Finland) which claims to be world's first Mobility as a Service (MaaS) solution with on-demand capabilities. Kyyti is collecting all the possible people transportation methods (bus, taxi, train, tram, ferry) from point A to B under one easy and user-friendly mobile application. One benefit of the application is that users does not need to know local bus or tram routes as well as the local taxi company number for booking the next available ride. All possible methods and combinations of them are shown visually in the application, which also gives you an estimate of the total cost of the trip before you book it. In the future, it is also possible to rent on-demand city rental cars or bike and ferry tickets through the app. User just need to know where they want to go. GPS location is used to point out the nearest pickup point. At the moment, all transportation method combinations are not yet available. Therefore, from now on I will analyze Kyyti in taxi service point of view.
What makes the application even more interesting is that you can share the travelling cost with other people who are willing to travel about the same route. You just have to travel with a bit more flexible schedule and you can save a lot of money that way. Sophisticated algorithm is used to calculate economic travel routes for the drivers where maximum number of clients are picked up and taken into various locations. Costs are charged automatically from the credit card of the user has set into application. Transaction is safe for both the driver and customer when cash is not used for payment. More infor-
mation about the company and its fresh business model can be found from its website: www.kyyti.com.
2. Osterwalder's business model canvas
Business model canvas (BMC) is a visual and simple tool for building and analyzing the business model. It is a spreadsheet divided into nine different section, which are showing the relationships between different stakeholders in the business. Who you work with, what you offer, and to whom you offer. The earning logic and cost structure of the company is briefly described.
Kyyti's business model canvas is shown in the Figure 1. Kyyti's value proposition is based on cheap rides, which could be booked easily through the mobile application. Shared rides are also social way of travelling - one can meet interesting new people while seating in the taxi. Although this might not be wanted for all customers. For that purposes customers can also book private normal taxi through the application.
Figure 1. Osterwalder's business model canvas for the Kyyti Company
Kyyti is providing its services to individual passengers, but it is also a new way for mass transportation people for daily commute to work. For example, Valmet automotive has taken it in use and are providing cheaper daily routes for their employees between Turku city center and Uusikaupunki car factory.
Kyyti needs a support of various key partners who are proving the infrastructure as a basement for the application. This included internet providers, app stores, and the most important ingredient in the business - big transportation companies and private taxi entrepreneurs.
3. Amit's and Zott's activity system perspective
The business model of Kyyti is next put in the focus of activity system perspective. In this analysis method, the company business model is divided into two main segments: design elements and design themes. Both contains several sub categories, which we will go through next. These parameters will describe the business architecture and the ways of creating value for the stakeholders (Zott and Amit, 2010).
Activity system content, first of the elements, describes the activities the company should perform. In case Kyyti, the key point is to provide rides to the customer. To be efficient in this Kyyti must establish lot of partnerships with third party companies who is taking care of the actual transportation. Kyyti is just a platform linking customers in attractive way to service providers. Kyyti must also make sure the transactions are secured and reliability is achieved regardless of the cellular reception and time of the day.
Activity system structure is explaining the dependencies and the sequence between the activities. As long as people have been travelling there has been others making it to happen. Therefore, in this case Kyyti is relaying to other companies and entrepreneurs. The business may start when transportation companies sign contracts with Kyyti. Moreover, the companies should be trained to use the service platform. After that, Kyyti will act as a linker and make sure that customers are made available for the drivers to be picked up. Drivers takes the responsibility to pick up customers and deliver them to destination within the promised time window accuracy, typically 5-10 minutes for private bookings and 20-30 minutes for shared rides. Payment are transferred through the application, which links Kyyti to banking companies and to transportation companies receiving the payment. Kyyti will take some percentage of fee for this service, which is one of the income strategies of its business model.
Activity system governance explains who is performing the needed activities. This has been written already in terms of service providers, transportation companies, and the Kyyti Company. We consider that the majority of the value that is provided to the customers is taken care of other companies than Kyyti. Kyyti has outsourced the hard work to third companies while it is focusing itself to maintain the customer and service provider network, application development, customer support, and advertisement.
Activity system design themes are configurations of design elements. These are orchestrating and connecting elements in activity system (Zott and
Amit, 2010). First design theme, novelty, is the innovative way of using all design elements. Kyyti is changing the traditional way of booking the taxi (by ordering the taxi from service center) much easier with the mobile application. Customers can see estimated arrival time and cost for the trip. When a taxi has been booked the customer may also track where the cars is located with the help of GPS. These digitalized new functions are more than welcome to boost up the user experience that people are getting for driving the taxies. CEO of Kyyti, Pekka Mottonen, is giving thanks to Finnish Government who recently dared to change law regulating taxi companies. Without this reform, new innovated companies, like Kyyti, could not do business here (P. Mottonen 2017, Kyyti website).
The next design theme, Lock-In, is all about how the business model can retain the stakeholders like customers using Kyyti services. There are not so many features for the customer that could lock-in to use the software. However, cheaper travel cost attracts new customers to start using the application but the customers can switch to use other application any time. Kyyti is not based on any monthly subscription. From the own experience of authors, during the first attempt to use an app to travel to Hartwall Arena in Helsinki, all cars were occupied. Authors could change and drive with Uber instead. The ease of ordering the ride in unknown neighborhood (and combination of different mode of transportation in the future) is likely to be such nice features that will make users to continue use the application.
For the drivers operating on this application platform is more interesting. If we consider a trip where a single customer wants to travel from Helsinki city center to Helsinki-Vantaa airport. We offer a screenshot of this kind of a trip from the application and it can be seen in Figure 2.
■ill eljsa ^ <r-
# Vantaa
Figure 2. Kyyti trip options to Helsinki-Vantaa airport
The traditional taxi service, Kyyti Taksi, will cost 41,51€ for the customer. Let us assume that from this received payment the driver pays 5% fee of usage for Kyyti, 5€ for gasoline, 15€ for insurances and salaries. The driver made profit of 19,4€ from this single passenger.
The better option for the customer is Kyyti Kimppa where two more persons want to travel to the airport. Driver will pick them up and will charge now only 26€ per passenger. Customer will reduce costs for the same route up to 40%. Three passenger each pay 26€, which makes total revenue of 78€. Driver will have a longer route and fuel cost increased now to 10€. Still after same fee, insurance and salary the driver will make profit of 49,1€, which is 153% more compared to single customer. Increased utilization rate and profit will probably lock the taxi drivers to use this service. This is also environmentally better as more customers are transported for the same CO2 emissions.
The third design theme, complementarities, means activities, which are tied together, and provide more value than separately running activities. A good example of this feature is the all-optional transportation methods, which will be included in the Kyyti application. The future application can combine several different methods under one single ticket. Customers does not have to pay for each bus, train, and taxi separately. Instead one and only credit card payment is done through the application.
Last of design themes, Efficiency activity, is overall on high level in Kyyti application. Everything you need to travel to A and B are integrated inside the application. Booking of the ride is made by the customer, so there is no need for receptionist to answer the calls. Payments are done automatically from the credit card, no need play with cash. The customer's feedback could be given through the app. One thing that could make the application even better is the possibility to use it also with a PC. At the moment, application only work with mobile devices. The possibility to book trips in advance with a PC could add more value and lock-in the customer. If a ticket is bought beforehand, it is available automatically in a customer's mobile phone and just be demonstrated to the drivers.
4. Model comparison
Business model canvas describes how a Kyyti Company creates, delivers, and captures value. It is a useful tool to analyze the business model of the company in big picture. Many new companies have failed to succeed when they put all the effort in the idea of the product without analyzing where the value and profit is finally taken and in which kind of environment they are going to act. Amit's And Zott's Activity System Perspective is focused more to analyze how the business model varies or has changed the traditional business model where the focal company acts. Before it can be applied properly, it is crucial to construct the business model canvas. It will clarify the key activities where the activity system analyzation should be focused. As a result of both analysis methods the following things are the key topics how Kyyti stands out compared to traditional taxi industry:
• Everything from booking to payment is done within the application
• The customer can choose from several different modes of transport
• Travel expenses can be divided between multiple passengers
• The total costs are known in advance
• Drivers can earn more by using the application
Business model sustainability can be evaluated using for example the flourishing business model canvas. It is an expanded business model canvas, which also considers the environmental aspect. Model contains all the same nine building block that the Osterwalder's business model canvas plus the social and environment aspects. Totally sixteen different questions of business model are in focus. Properly used it might show up some new risk and opportunities (A. Upward, Flourishing Business model canvas, 2016). The authors did not use the tool to make the full analysis, but couple example of its outcome could be in the section of Goals, the core idea of the entire Kyyti application is to improve the utilization rate of cars and thereby reduce CO2 emissions. This kind of a service could be also one way to reduce traffic in metropolitan areas. Ecosystem actors and needs as Finnish government and national laws might push the cities to reduce the emissions in coming years. This kind of service what Kyyti is providing might come to a very new perspective. That time the concept is already done and ready to be taken in use in larger scale operations.
5. Business ecosystem view
For ecosystem perspective, the authors used Ron Ardner's notion: Ecosystem as Structure. This notion is focusing to present all partners that need to interact together for value proposition. The ecosystem's structure is based on four elements: activities, actors, positions, and links. For this purpose, it is possible to use the Kyyti Dynamic MaaS chart shown in the Figure 3.
Figure 3. Kyyti's ecosystem model
Customers as an actor are generating the demand for transportation. This transportation activity is filled up with mobility partner's providers working as actors. Kyyti application's role in the ecosystem is to work as central actor, which links the customers to service providers together. Customers using the application are generating valuable mobility data, which is analyzed and linked back. It will further be used for the planning of the transportation system and for the optimization of the car fleet.
References
Zott, C., Amit, R., 2010. Business Model Design: An Activity System Perspective. Long Range Planning 43 (2010) 216-226.
CEO of Kyyti, Pekka Mottonen 2017, Press release. Available: http://www.kyyti.com/news-fi-kyytihelsinki.html.
A. Upward, 2016 Flourishing Business Canvas, Basic Walk-Through [Referred 1.12.2018] Available: http://businessdesign.tools/flourishing-business-canvas.
Kyyti Dynamic MaaS chart [Referred 2.12.2018]. Available: https://businessfinland.kuvat.fi/kuvat/EUREKA+Innovation+Days+Conference+2018/Prese ntations/Pekka.M%C3%B6tt%C3%B6.pdf?img=full.
УДК 330.15:332:504:502.6:550.028
Кононова Мария Юрьевна,
приглашённый профессор, доктор технических наук, доцент,
Вильдероттер Клаус, профессор, доктор естественных наук, доцент
УПРАВЛЕНИЕ РИСКАМИ ГЕОЭКОМАРКЕТИНГА НЕДВИЖИМОСТИ ТУРИСТСКИХ ТЕРРИТОРИЙ РАЗВИТИЯ
Германия, г. Розенхайм, Техническая Высшая школа Розенхайма Mariia.Kononova@th-rosenheim.de, Klaus.Wilderotter@th-rosenheim.de
Аннотация: Проект предназначен для развития территорий как устойчивой точки «умного туризма» на основе принципов устойчивого развития и управления рисками геоэкомаркетинга недвижимости. Новыми инструментами станут единый Chat Boot по местоположению и «умный консультант», позволяющий получать срочную информацию туристу и о туристе, а также о туристической инфраструктуре и недвижимости. Проект открывает возможности для Food Hub через эко- и этно -мультикультурный гастрономический туризм, предоставляя лицу, принимающему решения, срочную информацию непосредственно от туристов с помощью «умного помощника». Стандартную основу составляют показатели ЮНВТО по устойчивому развитию туризма. Анализируя геоэкологические аспекты, необходимо учитывать системное решение требований по территории развития и риски управления недвижимостью, опираясь на экологический учёт и рациональное природообустройство [16]. Инспирация подготовлена на основании методологии, разработанной в СПбПУ, ИСИ с использованием программных средств Технической высшей школы Розен-хайма.
Ключевые слова: цели ООН, показатели ЮНВТО, территория развития, гео-экомаркетинг, управление рисками, туристская недвижимость.
