A quick look at Karos Carpooling’s business model.
The carpooling concept is gaining broad engagement in the market, thanks to its superior customer experience and convenience. If you have been into carpooling, you might not deny the great comfort that comes hand in hand while availing its services. In this article, let us pick one of the most talked-about European leading carpooling business models – Karos Carpooling, and how it has managed to win the trust and loyalty of its users in a concise span of time. Also, to get ideas about how you can replicate and integrate their additions to win your customers in this competitive world.
Karos – Carpooling business model
This section gives a sneak peek at what Karos Carpooling is and what all aspects need to be taken into consideration while knowing details about it.
The platform offers wide flexibility to create and customize tailor-fit carpool networks in the market. Karos is a short-distance carpooling application that focuses on daily commutes in the suburbs and rural areas. It provides commuters with a convenient, affordable, and sustainable means of transportation. Thanks to artificial intelligence technologies, the company has proved that intelligent matching of demand and supply creates a high-quality and seamless experience.
Based on in-house algorithms that understand your behaviors and only recommend the most relevant commuters, the company already offers a seamless and adaptable in-app consumer trip. It also has intermodality options, which adds to the use of the software.
Business model – Targeting segments
Every business lives with the expectations of telling and conveying its brand story in the market and to its potential segments. In the case of Karos, the same is lived by and continued by its endless efforts.
The business model further targets the business-to-customer vertical and has to be very precise with its brand pitching and positioning.
As carpooling is often availed by customers, the brand plays a strategic advance to ensure the targetting is well done to capture the attention of its potential riders and acquire the maximum customers for the business.
Unlike other B2C carpooling services, Karos uses an indirect strategy to reach its end-users, forming agreements with organizations (>500 employees) that partially subsidize the service in order to provide their employees with more convenient and comfortable modes of transportation at cheaper costs.
As a result, each collaboration allows Karos to reach a significant number of users, as they work as multipliers and strong communication channels to promote the service.
Because of these distinct advantages, Karos Carpooling has grown to over 25K users, with 3600 of them active on a weekly basis, despite the lack of marketing since January 2016.
Founded in 2014, the brand has been very vocal in scaling up its project and reach to the optimal market. In terms of funding, the brand has reached the funded stage and is able to generate decent revenue for its growth and expansion.
With around 16 investors, as of today, more than $15. 7 million has been funded and is used religiously to make the growth happen.
The peer-to-peer transport channel is responsive and is dynamic in meeting the on-demand travel needs of the customers. In the later sections, we will be discussing the various segments and strategic vision of the company.
Karos – Working Segments
Here is the list of working segments for Karos:
Mobile Platform: Customers
The availability of mobility services is well depicted in the apps that can be used on any mobile platform. The mobile platform/apps are used to act as a bridge between passengers and drivers.
The apps are created by leveraging the power of machine learning. As soon as a ride request is initiated, through ML, the best match possible for the request is offered. The ML works based on a continuous algorithm of learning and considering the various factors in demand. Hence, when a customer asks for a ride, the algorithm helps in showing the possible and potential matches of the rides that are already on the way.
It helps in offering a quick solution at a very cost-effective price structure to the customers. The mobile app also plays a generous role in offering instant communication between the rider and the customer. It helps in the quick exchange of information whenever it is required.
Hence, without any risk of escalation or outages, the rides are completed with a maximum success rate.
Mobile platform: Drivers
Similar to the customers, there is a dedicated app for the drivers too. The app is meant to give drivers complete information about the movement of the processes from end to end. Starting from the incoming ride request to ensuring the driver can make an informed decision of going ahead with the ride by accepting it or skipping the ride by denying the ride. All these steps can be taken care of by the app. The app is simply crafted keeping in mind how and where the driver’s intervention is required.
The above-mentioned segments explain the role and usage of mobile platforms. It also highlights the key segments that play an active role in building up a revenue framework for the business. Karos has been religiously following the approach of keeping all the relevant stakeholders in the picture to make sure that every aspect of the business is being taken care of and is circulated with nothing less than perfection.
If you have been or are planning to get started with a carpooling business idea, make sure you choose to go with the approach of keeping all the stakeholders informed about the process and day-to-day activities. It will help in fostering a unique value proposition for your business.
If we break down the strategies and progressive vision implemented by the Karos Carpooling team, we would find that the brand has focused on targeting the right market at the right time by the right people.
Here is our observation on the same:
- Keep all the relevant stakeholders in focus. Make sure you use their presence religiously and make informed decisions while keeping the associated segments in the loop. This will help in adding confidence and building loyalty between the stakeholders and the business.
- Target and capture the attention of your audiences by mindfully positioning your brand and its services to the customers. If you are able to pull up the results by perfect positioning of the services, there is no looking back. You can expect more and more growth coming in your direction if you successfully portray your services in front of the right buyer.
- Stay cost-competitive and flexible with your offerings. This will help you and your services to edge out and stand competitive in the market. It will also help in attaining more customers/ business to your side.
- Keep your customers as well as drivers happy. There is a high attrition rate in the market. You need to make sure that none of your drivers leave the place because of one or the other reason. Always try to keep them intact and close by offering a happy, satisfied and flexible workspace.
- To bring back customers and add new customers to your business, it is important to start giving value to your customers and give attention to their opinions. If your customer feels heard in your business, he will surely be coming back to avail of your services in near future. Hence, there are high chances you can drive topline revenue for your business with simple steps.
Future road ahead
Looking at the growth pattern and increasing popularity in the market, we can interpret that Karos is going to be in its progressive mode even in the coming future. The road ahead is full of economic opportunities and can be well utilized to bring back the customers and growth in no time. If you have been looking ahead to implementing these strategies and getting started with your own carpooling business, feel free to choose it and get your success registered.
The market is full of upcoming opportunities, it’s time for you to find and avail them before it goes to the next competitor.
Jugnoo: Filling the technology gaps
As we say, the market is full of opportunities, your business needs to optimize and use them to the fullest. If you are looking to get partnered with smart tech that can help you to get introduced to the best and optimal growth, feel free to get connected with the experts at Jugnoo.