HOGESCHOOL INHOLLAND, DIEMEN

BUSINESS PLAN
GRADUATION PROJECT - “COMMUT-E”

Program Student Organisation

International Business Innovation Studies Tudor Mihai Roteb Lease
Wildenborch 6 +31 626 499 484 Kleinpolderplein 5
1112 XB Diemen 547499@student.inholland.nl
 3042 CE Rotterdam
TABLE OF CONTENT
1/ Underlaying problem 1
2/ Context of the problem 3
3/ Primary research 4
4/ Solution: Commut-e 5
5/ Benefits of the solution for stakeholders 10
6/ Trends & developments 12
7/ Pricing 13
8/ Financial analysis 14
9/ Implementation scenarios 18
10/ Recommandations 19
Sources 22
Appendix 23
1.1 INTRODUCTION

This document will present the final solution, which resulted after several iterations. The entire process could be seen in the “Reflection Log”
document, where I documented every step of the concept development. Presenting the solution here will start with a background analysis of the
underlying problem, context in which the solution can be applied, findings from primary and secondary research from “Research report” (p. 18-19).
Based upon these problems identified, the final solution is presented in terms of features, trends that might affect the implementation (sources in
“Appendix”, p.20), benefits for stakeholders, BMC, validation of the initial criteria, testimonials, differentiation from competition, financial analysis and
implementation scenarios. Last but not least, the document ends with a reflection on the META skills I proved to have by completing this assignment
and how this can help in my future career

1.2 UNDERLAYING PROBLEM OF TRANSPORTATION IN THE NETHERLANDS

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2. CONTEXT OF THE PROBLEM

The focus of my client is on the Rotterdam area. Many people live

outside the city centre of Rotterdam and travel everyday by car for
work. The further people live from the city (zone 3, 4, 5), the fewer
options there are for a fast and convenient public transport. Going
by car to work can be faster by 130 minutes compared to public
transport. This is why so many people choose to drive to work and
the reason for traffic congestion.
In the situation presented below, driving by car (B, right side) is
faster than public transport (A, left side) by 85-99 minutes. This
route was chosen as it represents the furthest commuting zone for
someone working in city centre Rotterdam, which is an extreme/
worst case situation. For a detailed explanation of how the journey
works, please go to “prototype” document page 1.

Commuting zones to/from Rotterdam

A. Commuting by public transport in Commuting zone 4 in rush hour B. Driving by car in Commuting zone 4 in rush hour 3
3. PRIMARY RESEARCH

The following results are coming from the primary research carried out in the “Research Report” document (p.18-19). This is a summary that helped at
building up the solution, made by combining the positive aspects of each means of transport and keeping away the negative ones.
I. Methodology
• 185 respondents to online survey
• Targeted on social media at groups of residents of the Randstad cities
• Two interviews with experts on mobility
II. Results

Commuting by public transport Commuting by car

Likes Dislikes Reasons to choose
Likes Dislikes Reasons to choose public transport vs. car
train vs. car
• Reliable / on time • Too expensive • Eco-friendly • Faster than • Traffic jams / delays • Offers flexibility
public transport
• Comfortable • Not enough • Work on train • Difficult & expensive • Space of my own
seats in trains • Convenient parking
• Good connections • Parking problems • Pick up children
• Cancellations • Comfortable • Low speed limits
• Small distance from • Cheapest • Travel with family
stop to destination • Delays • Efficient • Bad drivers
• Save energy • Home is far from public transport
• Free Wi-Fi • Noise in rush • Charge phone • Filling gas
hours • Avoid traffic • Payed by employer
• Clean • Expensive to own
• Sleep in train • Always have a place where to sit
• OV-chipkaart
• Able to work
• Frequency

III. Conclusions + design criteria

Vehicle facilities Service facilities User preferences

• Work on laptop • Charge electronics • Be on time • Subsidized by • 44% of respondents said they know at least
employer one person that has the same route to work
• Read / write / • Good Wi-Fi • Cheaper than driving and home as them
check emails own car • Rewards for travelling
• To always have a off-peak hours • 57% of respondents that want to work on
• Have a quiet place where to sit • Faster than public their laptop while travelling are willing to
space of my own transport • Gather people spend 30 minutes extra on the road if
• To be able to travelling the same
• To sleep adjust temperature • Eco-friendly proper working conditions are offered
route

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4 . S O L U T I O N : C O M M U T- E
The solution is the result of an extensive iteration process which you can find in the “Reflection log”, p. 3-20. Inspiration pictures from existing products
For pictures of the final solution (including car, app and service illustration), please see “Prototype” document.

Idea Roteb Lease will start their own ride-pooling service, lease electric vans from car
description dealership partners, AND modify their interiors for the passengers to have proper
working conditions.
Basic o4/6 seats for working in the back and 1 seat for driver in the front
features of oBack of the seats equipped with working tables
vehicle
oElectricity chargers
oWi-Fi
oSeat divider for privacy
Basic oUsers can book their trip 24h before their travel
features of oIf booking is cancelled, 25% of the trip value will be deducted
mobile app
oApp will show how much CO2 it has been saved compared to driving own car
oApp will show how much money has been saved compared to driving own car
oApp will enable passengers to connect to each other for further travels
oApp will show estimated time of arrival after booking
Extra oThe people that choose this service and leave their car home will have the chance to
features of share their vehicle on SnappCar / MyWheels platform to other users in order to receive
service some money in exchange.
oAfter peak hours, the vehicles will perform car-pooling services for people in the city.
The people can watch ads inside the vehicle on provided tablets and earn credits, which
they can use to pay the ride or spend them on items from our partners.
oCorporates can choose to have a long-term contract, which will offer a vehicle with the
company’s logo on it.
Customer oB2B for employees of large corporates in Rotterdam, similar to private taxi services
segments
oB2B for employees of Roteb Lease’s main clients who live outside of Rotterdam and
need to go to work in the city centre
oB2C for people living in the commuting zones near Rotterdam who usually go to work in
the city by car

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4 . S O L U T I O N : C O M M U T- E

What, why, who, when, where and how

What: Commut-E is a ride-pooling service created for employees/professionals that have to travel between 30 and 60 km from their homes to the
offices that are mostly located in business centres. The service is sold directly to corporates and they will make it available to their employees.
Besides the corporate focus of Commut-E, the ride-pooling service is available to people that travel on short distances within the city in off-peak
times.
Why: Commut-E was started as a response to a series of trends. The number of people living in cities will grow tremendously in the near future,
which has direct influence on the trend of gentrification, which means that cities will get larger and more people will live further and further from the
place they work in. Combining these trends, cities will see a large increase of people travelling by car, as public transportation for long distances
usually requires switching means of transportation and could take even longer. Another trend that Commut-E is responding to is having new ways of
working. People want to be more flexible and work whenever, wherever they want. Time becomes more precious and people are looking at new
ways to become more efficient. Therefore, Commut-E offer them a solution to their new ways of working needs. Last but surely not least, the
environment needs to be protected and almost the entire world committed to reduce their CO2 footprint, inclusive the Netherlands who will ban all
non-electric vehicles from the country starting from 2030. This starts the trend of emission-free vehicles, and Commut-E responds to this by being the
first company to implement a carpooling service fully reliant on electric power.
Who: Commut-E is started in partnership with Roteb Lease, a governmental-owned company from Rotterdam who specializes in vehicle leasing and
maintenance for (previous) governmental companies. They have the expertise to refurbish the vans and keep them well running. The first point of
contact from Roteb Lease for this project is Willem Bikker, innovation lead. In case the client decides to continue with this project, I will take the role
of business manager to take care of implementation and development. In regards to the customer segments, Commut-E focuses on both B2B and
B2C, targeting professionals that work in corporates for the first case, and middle-to-high income citizens that have internal commuting needs for the
second case.
When: The preparations for the project have already started, this report being the first step. Between the months of June and August of this year, the
company will be officially started and all the resources will be bought, set up and tested, as in September 2018, the service will go live.
Where: Commut-E will start in Rotterdam and will be available to users that are situated within a range of 60km from the city centre, areas previously
considered in this document as commuting zones. Depending on the rate of adoption and further market research, the service can expand to the
North and South of Holland. The next step would be countries where electric charging is widely available, such as France, Germany, Austria and
Switzerland in Europe, but also the US and Canada.
How: Commut-E works only by installing the application on iPhone or Android devices. For B2B (corporates), users will be given a special link to
register, as the app can be customized with the layout and logo of the enterprise. For B2C, users can download the app, create an account with their
phone number or email, add their credit card details and then they can begin their first journey. A full video explanation of how the app works can be
found at this link: https://youtu.be/R5o0I15jjoI .

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Designed for: Commut-E Designed by: Date: Version:

The Business Model Canvas
Key Partners Key Activities Value Propositions Customer Relationships Customer Segments

Refurbishing the vans Commut-E will be the first B2B B2B

Roteb Lease ride-pooling, fully electric service that
Reaching out to new business brings the experience of a Contracts with enterprises to Large Corporate Enterprises who will
clients business-class flight in people's everyday subscribe to the monthly offer the service to their employees
Luxury van seats supplier commuting routine from outside the commuting service, payed at the that have to commute to work.
Commuting service for working city to business centers. beginning of the month
professionals traveling from
outside the city in peak hours
Gemeente Rotterdam The van is refurbished in order to B2C B2C
Commuting service for people meet all the necessary conditions for
travelling within the city in off-peak people that want to work on their People can book a ride with the Medium-to-high income people that
hours laptop while travelling, while offering Commut-E app and pay per ride live in cities and travel within the city.
a premium-class experience.
Marketing
The solution comes with a very
competitive pricing, cheaper than any
Key Resources other mobility-as-a-service company Channels
currently on the market.
Sales team
Electric vans
Newsletters
Human resources (mechanics, sales,
marketing, business...) Social media

Van accessories (seats, Wi-Fi..) Google AdWords

Location/venue Conferences

Mobility app

Cost Structure Vehicle refurbishing Revenue Streams

Marketing B2B contracts

Wages B2C rides

App/software development
Training
Utilities

Fuel

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4 . S O L U T I O N : C O M M U T- E

Most of the criteria was checked with the solution. This means that the solution brings the value that the users expect, meaning it is the right product-
market fit. The only criteria that was not meet is having the service faster than public transport. At the same time, people that wanted to work during
their journey declared in my primary research to be ok with spending 30 minutes more in case they have the proper working conditions. Therefore,
the solution is still viable. Another thing was to have the service cheaper than the own car. In order to have the business case attractive, the cost of the
service is 2 euro more expensive. Adding the benefits of working and quality conditions of the interior of the van, the 2 euros are justifiable, being
cheaper than any other mobility-as-a-service solution.
/ Faster than public transport Rewards people for travelling in off-peak times
/ Cheaper than own car Comfort, flexibility and speed
Should be always on time, reliable Chance to work on their laptop while travelling
Should not exceed 30 minutes more than private car Quiet, clean environment
Focus on an existing MAAS solution Fits more than two people and up to six people
Employers to subsidize travelling Brings together people travelling on the same route

Newness, usefulness, appeal and value for customers and stakeholders, and its technological, commercial and business feasibility
An extensive market research has been carried out to identify all mobility-as-a-service companies in the Netherlands, as well from some other
countries. It is clear that ride pooling becomes more popular, with UberPOOL the best example in the US. By looking at the findings from my primary
research, the main issue with driving by car to work is traffic jams, mostly because they are a waste of time. If the time spent in traffic would be used
efficiently, people admitted to be comfortable with spending up to 30 minutes extra. Commut-E offers all the features our target group has asked for,
such as electricity socket for charging the laptop, USB for charging the phone, working table, stable Wi-Fi connection, etc. There is no other service
on the market that offers such a complete package that contains all the elements needed to have a proper working environment. The solution was
tested with all stakeholders – client, end-user, corporate customers, designers, developers and mobility experts. After receiving feedback from them,
the solution was iterated until all the requirements have been met.

The change generated compared to the existing situation, considering direct and indirect stakeholders
The biggest change will be felt by the end-users that will be able to save so much time while travelling. It could mean that they will have more time to
focus on important things at work and get their jobs done faster. If the employers agree, the workday could start straight from the moment their
employees enter the car. This could mean that time spent at the office could be with two hours less or that productivity will increase at the office
because all the preparations for the day have been already made while commuting. Commut-E can boost people’s productivity, which means money
saved for the company. Another direct stakeholder is my client, Roteb Lease, which will benefit directly from the revenues of Commut-E and will
diversify their portfolio. As for indirect stakeholders, the Gemeente Rotterdam will have an increased brand image as for pushing this project forward
and making it available to its citizens. Another impact is delivered on the highway patrols, which could have to deal with less car accidents because
the number of vehicles on the road will be reduced.

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Side effects and impact on direct and indirect stakeholders

Commut-E is an innovative combination of existing products and services. This makes it relatable to existing market, but at the same time, it is unique
by its value proposition. Such innovations challenge existing systems and act as a replacement. For our case, Commut-E challenges the traditional
way of transportation for outside the city, which is now mostly occupied by public transportation and private car. The solution aims to bring together
people that move in the same direction in order to reduce the number of cars on the street, therefore reduce traffic congestions and reduce people’s
wasted time in traffic. For some people, especially the newer generations, Commut-E could become their preferred method of commuting, and
because it is addressed to both people that travel by car and public transport, when the service will scale-up, commuters will be more equally
distributed over more channels. This means that those travelling by public transport will have more free seats in trains, trams, metros and buses, while
the highways will have less cars on the roads. Less cars means less CO2 that will improve the quality of the air in cities. Hopefully, the service will
expand in such a way that it will serve as a complete replacement for private cars. This will act as a negative impact for the automobile industry, which
could lead them to enter new markets with new products and even adopt our solution to become competitors. Another negative effect is that even
choosing to travel only in electric vehicles it is still harmful to the environment, because all the energy required producing the vehicles and batteries.
The increased number of electric vehicles will require more power, which should come from alternative sources and not from oil or coal. If the energy
will still come from traditional sources, then electric vehicles will contribute to a faster waste of the natural resources. Finally yet importantly, another
negative effect could be that people could become workaholics if they work while travelling and at the office, but they can choose to do other things
in the van, such as reading or sleeping.

Testimonials for the appropriateness and desirability of the innovative solution from real potential users
“The service offered by Commut-E is exceptional, solving the big problem of traffic congestion while offering flexibility for its users.” – A. Dinca, Expert
on mobility
“What could be better than not being stuck driving for one hour in traffic or not having where to seat in the train when everything I would like to do is
spend my time on the laptop to get some work done?” – M. Roodman, Corporate employee
“For me, the best thing of Commut-E is that I can take a short nap after work and arrive home to my family with more energy and more time to spend
with them.” – B. Gonzales, Corporate HR
“Driving in bad conditions is stressful, so I was really happy to hear that there is a service that can offer me a more enjoyable experience every day to
work.” – C. Sebastian, App. developer
“Being able to enjoy the business-class conditions of an airplane every day to work is just so cool!” – N. Diaconu, UX designer
“I never thought there is another way to work while travelling rather than paying business class train journeys. I would start using it from today!” – M.
Nijhuis, Corporate employee
“It is incredible to see that this service offers so much in such a small price.” – G. Stanescu, Corporate employee
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