Er markedet for deleøkonomi gennemskueligt for brugerne? Kan aktørerne på markedet stå stærkere, hvis de arbejder sammen? Det mener vi, og derfor har vi skabt et koncept, som er målrettet gennemsigtighed og udspredelse af det deleøkonomiske budskab.
Virksomheden er en online metasearch engine, som forbinder deleøkonomi platforme sammen på en åben markedsplads. Vi er allerede langt henne i udviklingsarbejdet af platformen, og er ikke langt fra at kunne lancere en live platform.
The company is driven by a vision of a future where sharing economy is an integrated part of everyone’s life. Thus, making sharing economy more widespread and helping people to connect using sharing economy as the gateway. We believe that sharing economy is the key to giving people access to items not otherwise attainable and helps us make better use of the earth’s resources.
This section will make use of terms like peers, recipients, providers, and platforms. This section will clarify what is meant by these expressions.P2P = Peer to Peer
Peer = A private individual who either receives or provides an item
E.g. the private entity who interact with sharing economy, in contrast to the corporate entityRecipient/Renter = A person who rents an item
E.g. the person who rents an apartment or car through AirBnB and GoMoreProvider/Property Owner = A person who rents out an item
E.g. the person who rents out an apartment or car through AirBnB and GoMorePlatform = The app or website who facilitates the connection/transaction E.g. Airbnb, GoMore, Boat ex, SnappCar etc.
Peer recipients on the P2P market go through a tedious process when browsing the different P2P items on the sharing economy market, preventing them from discovering all the available possibilities. At the same time, peer providers only become exposed to a fraction of the potential market. The process of connecting both the peer provider and the peer recipient is simply not working at its best. Additionally, P2P platforms tend to stay fixed in a specific market position, only tending a specific user need e.g. housing/accommodation, transport, and tools.
To provide a concreate example. Let’s imagine you are a first-time sharing economy user wanting to book items for a trip. If you want to find several sharing economy items across different platforms, the process is quite tedious. You would have to Google your way to a given platform which is especially difficult, if the platform is in a foreign language. Then you would have to download several different apps and open thousands of tabs.
The company provides the perfect solution. The company is one open P2P marketplace, giving you all the options right at your fingertips - simple and easy.
Peer recipients seeking the perfect solution at the best price. Peer providers seeking an easier way to manage the items they make available. Established P2P platforms inclined to improve gross and market penetration. New P2P platforms seeking initial growth.
In order to gain insights into whether or not a user need existed a user survey was conducted. With more than 350 participants this survey was highly successful. This survey confirmed many of our hypothesis giving us the needed confirmation to continue the project. The survey did confirm the following:Users are interested in maintaining contact to other users they have had a previous successful interaction with.
Users are interested in searching through listings made by their network before searching through users outside their network
Users want to explore the P2P market to a greater extent
Users do not have a high preference towards any platform
Displaying their own as well as watching reviews other users have received is an important aspect when interacting through P2P platforms
Unique value proposition
We provide the shortest user journey for people eager to browse the P2P market exploring the various options. Connecting the various P2P platforms gives the user the ideal possibility to plan a vacation using various P2P rentals along the trip. Thus, providing P2P platforms with a unique way of becoming each other’s complementary items. This is the all-around solution for peer providers listing items through P2P platforms. P2P platforms also gain a mutual benefit from each other’s presence on the platform.
P2P platforms often operate with a business model which takes a commission for each rental facilitated by the platform. This is often in the range of a 5-20% cut of the peer provider earnings and 6-12% cut of the peer recipient cost. This amounts to an average of 20% of the total transaction for most platforms. The revenue stream of this concept stems from a percentage cut of the earnings for each platform. This cut will vary from 30-10 pct. for each P2P platform.
The trends indicate rapid future growth within the sector. Viewing various reports from large consultancies such as PWC, all numbers point in the same direction – rapid growth. Looking solely at the EU, the total revenue has been growing from €1.0bn in 2013 to €3.6bn in 2015. This development is expected to continue into the future. Thus, growing the sharing economy from a global level of $15bn in 2013 to the range of $335bn in 2025 and the EU market to an estimated level of €83bn in revenue the same year.
Few platforms work as metasearch engines within the P2P industry. In general, the market is split in two. Two platforms (Tripping.com, HomeToGo) are well established one the market. These two platforms solely focus on the accommodation sector. These platforms mainly operate on the North American market and has limited web traffic coming from Europe.
The other part consists of platforms trying to aggregate a mix of different sectors. These platforms are mainly operating on their home markets, France and Spain (Opitrip, WONOWO).
Founded in 2010 with a headquarter located in San Francisco, United States. Tripping.com is the largest global P2P accommodation aggregator. Tripping.com solely acts as an affiliate platform, redirecting users onto the platform which hosts the listing. Their only focus is towards vocational housing and accommodation. They are currently hosting a surplus of 10 million apartments and vocational housing. The platform facilitates around 716.000 monthly unique visitors.
Founded in 2014 with a headquarter located in Berlin, Germany. Much like Tripping.com, HomeToGo is a vacation rental metasearch engine that allows user to search and compare listings of over 8 million offers in over 200 countries from more than 250 providers. HomeToGo solely acts as an affiliate platform, redirecting users onto the source platform which host the listing. HomeToGo has a fully integrated an app platform as well. The platform has around 203.000 monthly unique visitors.
Founded in 2014 with a headquarter located in Orleans, France. Opitrip is a metasearch engine and offers an online web platform that enables its users to find accommodations, carpooling, car rental services, activities, transportation, and more. Opitrip enables its customers to compare prices and book services. Opitrip solely operates as an affiliate web platform, redirecting users onto the source platform which host the listing. The platform has around 30.000 monthly unique visitors.
Founded in 2016 with a headquarter located in Madrid, Spain. WONOWO is a metasearch engine much like Opitrip. The website offers an online platform that enables its users to find accommodations, carpooling, car rental services, activities, transportation. WONOWO solely operates as an affiliate platform, redirecting users onto the source platform which host the listing. WONOWO has an app platform as well as a web tool. The main focus of the platform has been the app. The main focus has been the app, with only around 30 monthly unique visitors using the website.
Founded in 2015 with a headquarter located in Copenhagen. Deemly was launched in June 2016 and solely focuses on aggregating review across different P2P platforms. The platform creates a total score upon collecting the different review scores across the platforms. Deemly has around 400 users and has created an open API which is fully compatible with any P2P platform.
The team strength lies in the diversity. There is an abundance of advanced digital skills which makes the digital demands achievable, but also the strategic marketing know-how lies within the team. As a team, we especially master the theory of Lean Startup, with a scientific approach focusing on key metrics, and keeping the cost to a minimum. In the moment, the team consist of one fulltime founder and five part-time contributors.
In order to boost growth, the team needs to become stronger on the development aspect. The team currently consist of a marketing/strategy person working full time. Of part-time employees is that a back-end developer, two front-end designers who both have a little programming experience, a salesperson and an HR/researcher who are contributing to the project. In order to thoroughly facilitate the development process, a front-end coder is highly needed.
Our projection is to increase the amount of transactions by 5% each week upon realizing the necessary funds. Without funding user growth would solely stem from organic growth. The organic growth is budgeted to be at around 35% of the total user growth. This would mean a user growth at a lower percentage point around 1.9% each week. This level is not sustainable in order to realize exponential growth.
With exponential growth of 5% the total amount of transactions will reach 15.000 on a weekly basis in week 104 at around 68.000 transactions in the 24th month. This scale of growth has been calculated using cases like Tripping, GoMore and AirBnB as comparison. Still, with a more conservative growth estimate of a 4% weekly growth, the amount of transactions will still reach a level of 26.000 transactions in the 24th month.
The development and progress to this point has been self-financed. In order to grow and scale, funding and an expansion of the team is necessary. The basis of the company reaching the projected gross levels, has been made using various key metrics. These metrics are listed below.
The earnings per transaction has been calculated using data from Wimdu (accommodation), AirBnB (accommodation), GoMore (car sharing) and Spinlister (bike sharing). Using the average earning per renter for each platform, the earnings per platform for each transaction was calculated. Finally, this number was multiplied with the projected average commission fee of 15%. This number takes into account the projected number of 1,75 items per each transaction as well.
The final budget has been made with the outlook of two scenarios in mind. One scenario outlines the final as well as the ongoing development, financed strictly through capital investment.
The other scenario outlines the projected budget with a partnership agreement in place. Thus, transferring most of the development labor and cost to an active partner with the capabilities to facilitating this aspect. Below is an outline of two scenarios that shows two different ways of realizing aggressive growth.
Capital Investment (Scenario 1)
This scenario outlines the projected budget upon receiving funding in the form of cash only. In this case funding in a size of 3.2 million DKK will be sufficient for maintaining a period of 18 months with controlled growth. If the plan is held back or otherwise differ, the company will not become cash negative for at least 18 months.
Partnership + Capital Investment (Scenario 2)
This scenario outlines the projected budget upon receiving funding in the form of development as well as cash. In this case funding at a size of 1.7 million DKK will be sufficient for maintaining a period of 18 months with controlled growth. If the plan is held back or otherwise differ, the company is still not going to become cash negative for at least 18 months.
In this case the revenue remains the same for the first year running at 908.262 DKK but the fixed costs are drastically lower. Below is the budget overview for each semester.
A 5% weekly scaling of the total sales and marketing budget will result in a 5% weekly growth of the total transactions. For throughout the 3 year-budget the company will stick to this plan, and the costs are calculated in accordance with this growth. With the user growth and the AdWords and Facebook expenses being highly correlated, all AdWords and Facebook expenses has been calculated under variable costs.
The software team does not have to grow significantly the first year running. The team will consist of a total of five fulltime employees. The development team will consist of a designer, a back-end programmer and a front-end programmer. A great deal of the work being done by the development team is also going to be supported by various internships in order to lower development cost. An Android and an iOS developer will be recruited from the start of year 2.
In the case of a strategic partnership the cost of running the development team is going to be handled by the partner. Thus, providing the company with a lean organization. This partner has the opportunity to postpone all development cost until the company has passed a point of breakeven. In this way cost are kept at a minimum and the necessary experience and development knowledge are ensured by this entity.
Sales and marketing
All contact to P2P platforms will be handled by a sales employee in correlation with the CEO. In year 3 the sales team will expand by hiring country managers for UK, DE, FR, ES and NL. Marketing are handled by the CEO and the designer in correlation with external marketing agencies and freelance bloggers.
The concept allows scaling to be relatively easy. Thus, implementing foreign P2P companies on the platform could support our value proposition in regard to the travel scenario the concept supports. In addition, implementing foreign platforms would support how attractive the company would be for the P2P companies who are operating on the Danish market. Giving them the possibility to easily promote their service towards visiting tourist.
The go-to market strategy has been separated into four different stages.
Stage 1. Is the build of an affiliate meta search engine. This is solely a platform which catalogs the various P2P content into one website. The platform then redirects the customer onto the given platform which host the user and the respected item.
Stage 2. Is a closed circuit platform which facilitates the transaction of goods solely on the platform. Thus, the user does not have to leave the platform in order to complete the transaction.
Stage 3. Is an extension of the platform, allowing users to list items through the platform as well. Thus, the item the user is listing goes through our platform onto the P2P platforms, but the management is handled through our platform. This enables a full user experience with the user being able to rent and list items through our platform.
Stage 4. Addresses the integration of the other sharing economy sectors. When tapping into other sharing economy sectors the initial integration will be of the service sector. Thus, widening the usability of the platform. Service and rental makeup almost 80% of the total industry.
Until now, we have managed to gather a very competent team. We have managed to locate the best user need with over 140 users stating that they would use our service once it goes live. These users were gathered during our user survey. An early mail catalog of 90 subscribers has been made, with the sign-up page for early users being finalized. These subscriptions were also gathered during our user survey.
Also, the feedback received from the respective P2P platforms indicate a specific market need. This feedback was gathered during “Deleøkonomisk Start-up Lab” which was an event held by Tryg A/S at their main campus. Also, positive feedback has been received from a personal dialog with different platforms. Among these the Danish platform Boatflex has agreed to participate in a partnership. A process of reaching out to the various platforms on the Danish market is currently undergoing.
Finally, the mockup for the platform has been made. Both for the web as well as the future app. Moreover, the proof of technology has been achieved through a fully working prototype.
The next step is to complete fundraising or engage in a strategic partnership. Thus, giving the company the leverage to finalize the development, as well as boosting future growth. Upon reaching this stage an initial launch day would be within two months.
Spørgsmål til panelet
1) Business model
Konceptet har nogle integrerede udviklingsmuligheder. Roadmappet ligger op til at platformen rulles ud i flere stadier. Det ønskes diskuteres hvorledes disse bør implementeres i konceptet, hvis overhovedet. Hvordan bør disse stadier adresseres? Og hvorledes skal fokus placeres i forbindelse med udviklingsarbejdet?
2) Go-to-market strategi
Hvorledes adresseres strategien, for udrulning i fire udvalgte EU-lande?
I hvor høj grad er strategien skalerbart, og vurderes det, at det vil være en strategisk fordel at udrulle platformen i hhv. UK, NL, FR og DE? Sparring på strategien og ikke mindst tidsrammen for denne udrulning, ville her kunne give os et strategisk overblik.
3) Strategiske partnerskaber/ Investor strategi
I forbindelse med at fintune udviklingsarbejdet og klargøre virksomheden til aggressiv vækst, kræves der flere midler. Hvorledes bør dette takles?
Hvorledes opnås bedst adgang til nødvendige ressourcer, gennem strategiske partnerskaber/Investor strategi?
Spørgsmålet er om et strategisk samarbejde med et udviklingshus, ville kunne udfylde behovet for de fornødne ressourcer?