Analysis of Taxify Business Model Canvas Components
Task Description:To be completed individually, you are required to prepare a business report that deconstructs an organisation's business model and identifies the critical success factors that make the business sustainable. Your analysis will demonstrate your critical thinking skills and your ability to professionally articulate your findings.
Before commencing, you must seek your lecturer's approval to undertake an analysis of the business you have chosen. The type of organisation that should be identified for study is one that is relatively new, innovative in how they operate, and have most likely been established in the last five years.
To achieve a result that meets your study objectives, please ensure the business report addresses each of the assessment criteria detailed below and which is elaborated in the marking rubric.
The following paper has taken into consideration discussing about the business model canvas followed by Taxify for its business operational scope in Australia. Furthermore, the strategies used by the organisation for accomplishing each of the building blocks has also been enlightened upon. It is of immense significance to note that the low cost service facility offered by the cab service provider is one of the primary reasons for it success in the competitive marketplace of Australia. ?
The following paper provides a detailed description of the business model canvas developed and followed by Taxify, as Estonia based cab service provider. The paper has specifically focussed on the business operational activities of the organisation in Australia and the business model thereby discussed in this regard is well fitted to the public transportation service industry of the country.
2.0 Company Background
The Australian taxi marketplace is found to project a CAGR (Compounded Annual Growth Rate) of 5% in the future. It is mainly due to the fact that can services is recognised to play a crucial role in easing the transportation needs and demand of the Australians (Mordor Intelligence, n.d.). Taxify is one of the well-known and relatively new ridesharing transportation service organisations operating in the Australian market. Its unique selling proposition is found to lie in offering cheap lift service to customers in the form of attractive discounts (Yip, n.d.). In Australia, Taxify is found to operate primarily in the three cities of Brisbane, Melbourne and Sydney. Furthermore, the operational stretch of the cab service provider in the three cities is found to be highly significant. It ranges from shores of Geelong to the busy and crowded Melbourne port, the iconic Sydney Opera house to the beaches of Eastern Sydney and both north and south of the river in Brisbane (Bolt Technology OÜ., 2019a; Bolt Technology OÜ, 2019b; Bolt Technology OÜ, 2019c). The customers are able to experience a hassle-free ride within a few minutes in any of the above-mentioned areas.
3.0 Business Model Canvas
The business model canvas of Taxify is elaborated in great detail with the help of the following diagrammatic representation:
3.1 Building Blocks
- Key Partners: The key partners of Taxify are drivers, investors as well as supporters, each of whom are associated with different aspects of running the cab service in Australia. The drivers are the primary ones responsible for offering the customers with the organisational service while the investors account for about providing necessary financial funding.
- Key Activities: The key activities that Taxify caters to are providing customers with cab services with a few minutes of booking across every corner of the three cities of operations. It also makes effective use of customer data using analytics so as to improve the efficiency of customer service largely. The cab service provider also stresses relevant importance in enhancing the degree of customer engagement through refining the value creation aspect of customer service.
- Key Resources: The key resources associated with Taxify are skilled staff members, trained and professional drivers who are responsible for delivering the service to the customers. It also accounts for about data analytics operational environment as well as mobile application development and upgradation environment.
- Value Proposition: The value proposition aspect of Taxify focusses on offering its rider a safe and secure cab service in due course of the day to day activities. Furthermore, the customer value creation process lies in maintaining high degree of transparency in fare calculation process with the lowest cost as much as possible. On the other hand, the value also accounts for the cab service provider. In this regard, Taxify is found to project itself as an organisation that tends to offer its drivers with high degree of operational flexibility. It also tends to serve as an effective as well as easier means of earning a large amount of income.
- Customer Segments: Taxify is found to segregate customers on the basis of their relative usage pattern as well as the reasons for which they tend to avail cab services. Apart from behavioural aspects of segmentation, customers are also segregated on the basis of demographic factors like age, gender, social-economic factors like income and spending capacity. The consideration of geographical segments is of immense significance in identifying suitable customers residing in Sydney, Brisbane and Melbourne, the cities in which Taxify operates.
- Channels: The communication channels used by Taxify in relation to make people aware of its service are many. It comprises of social media marketing, word of mouth advertising spread due to development of high customer value as well as use of tradition local print media campaigning. The mobile application stores are also found to market the Taxify app to be downloaded by people for use.
- Customer Relationships: The customer relationship development process is found to rely on offering a convenient, safe and secure service facilities. It also has enlightened on the fact that the operational service of Taxify complies with the standard rules and regulations governing the process of operating taxi services in Australia.
- Revenue Streams: Taxify is found to follow a revenue model operational mode with the primary focus lying on emerging as one of the cost saving service providers. The minimum charge levied by the organisation is identified to be only $9 on every ride basis (Yip, n.d.). Furthermore, the operational activity of Taxify has highlighted its relative revenue to be ranging within a margin of $1 billion on a yearly basis (Munro, 2019).
- Cost Structure: The cost structure of Taxify comprises of customer acquisition costs, weighted average cost of capital and money spend for accomplishing legal settlements. The organisation is also found to spend rigorously on continuous research and development in relation to developing a highly technological mobile application for the customers.
Each of the nine building blocks identified in relation to Taxify is found to bear immense association among themselves. The key resources of the organisation, drivers and investors both are integral to helping Taxify in enhancing its customer service and thus develop adequate degree of value proposition in the minds of the customers. The data analytics usage process, one of the primary aspects of the business model has been found to play an integral role in developing good and cordial relationship with the customers.
5.0 Critical Success Factors
The low-cost business model followed by Taxify has been identified as the primary factors associated underlying its success in Australia. To successfully accomplish this objective, the organisation has further gone ahead with recruiting highly professional and trained drivers to provide the customers with the service. Therefore, the immense customer service provided by the organisation is mainly due to the effort and dedication given by the drivers in helping them reach from one place to another, spread across 3 primary locations of Australia.
6.0 Factors Influencing Success
One of the primary factors underlying the success of Taxify in Australia is the low-price service that it has gone ahead with offering. Furthermore, it is found to make effective use of data analytics for the purpose of gaining detailed insights into the needs and demands of customers, followed by offering them with the best possible cab service in comparison to its counterparts operating in the country. Moreover, the cab service provider has stressed relevant importance in complying with the widespread rules and regulations that the country has imposed to on its service operation.
7.0 Recommended Changes
The business model canvas of Taxify is strategically planned and capable of helping it to experience immense customer loyalty as well as usage benefits. However, the organisation can take into consideration improving its data analytics effectiveness further to segregate customers more accurately. The process must be followed further for developing cab services in accordance to the identified customer needs and demands. It also accounts for considering the incorporation of technological upliftment in every step so that the primary communication medium, the mobile application is attractive and capable of attracting the customers largely.
The above section has provided a detailed elaboration of each of the factors governing the process of high degree of operational significance to Taxify in the Australian taxi transportation network. Each of the building blocks identified in relation to the business model canvas of the organisation are highly dedicated in offering the best service at the lowest cost to the Australian population. Taxify business model canvas assignments are being prepared by our management assignment help experts from top universities which let us to provide you a reliable assignment help Australia service.
Bolt Technology OÜ. (2019a). Bolt in Melbourne. Retrieved from https://bolt.eu/cities/melbourne/
Bolt Technology OÜ. (2019b). Bolt in Sydney. Retrieved from https://bolt.eu/cities/sydney/
Bolt Technology OÜ. (2019c). Bolt in Brisbane. Retrieved from https://bolt.eu/cities/brisbane/
Mordor Intelligence. (n.d.) Australia Taxi Market – Growth, Trends, and Forecast (2019 – 2024). Retrieved from https://www.mordorintelligence.com/industry-reports/australia-taxi-market
Munro, A. (2019). Taxify vs Uber: Side by side comparison for drivers. Retrieved from https://www.finder.com.au/taxify-vs-uber
Yip, S. (n.d.). 6 apps like Uber you should take for a ride in Australia. Retrieved from https://www.finder.com.au/apps-like-uber